What Is The Assigned Risk Plan, and Why Is It So Expensive?

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New York State invented an interesting plan – the assigned risk program – for certain drivers that may have trouble finding car insurance, but if you find yourself in that group, you’ll probably think the plan is something other than “interesting.” Being placed in this program makes it very difficult to find NY cheap car insurance. The assigned-risk program is designed to find car insurance for drivers that are otherwise deemed uninsurable by insurance companies. This is commonly because insurance companies judge a driver as a bad risk, due to a history of accidents and speeding tickets, little or no previous driving experience, or an abnormally high history of insurance claims.

Luckily (depending on how you view luck), New York State has the NYAIP – the New York Automobile Insurance Plan. This plan assigns drivers to an insurance company, under a rate determined by the NYAIP. Even though these high-risk drivers are insured as a group, thus dispersing their risk, the rates for the individuals are still higher than that of normal drivers.

So if you find yourself in this group, you’ll naturally want to know how to get out as soon as possible to lower your rate. Getting off this plan depends primarily on the free market. While your assigned insurer is obligated to cover you for three years, you’re welcome (and encouraged) to constantly shop around with other companies for lower rates. If you keep your driving record clean for long enough, you’ll eventually get a lower premium quote from a competing company. Once you switch companies, you’re off the plan and on a lower rate, so it pays to vigilantly search for a better deal.

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