bAuto Insurance/b Through the Pennsylvania bAssigned Risk/b Program b.../b
Most people know that if you have an accident or a speeding ticket on your driving record that you will probably be paying more for your car insurance. Most people are also aware that choosing to drive certain types of vehicles will also increase your premium costs. But most people don’t realize that these same factors can exist in such a way as to prohibit you from obtaining car insurance all together.
Auto insurance providers typically divide drivers into a three-tiered system of risk: preferred risk, standard risk, and non-standard risk. But there is a small percentage of drivers who do not fit into any of these categories. It may be because of a bad driving record, that fact that they live in a high risk area, or they drive a vehicle categorized as high risk. But the bottom line is that they are drivers who are unable to secure car insurance through the voluntary market. Meaning, they cannot get an auto insurance provider to take them as clients.
Since Pennsylvania is a state that requires mandatory insurance in order to operate a vehicle, what is a high risk driver in Pennsylvania to do? Well, while it will certainly mean much higher premium rates, these drivers can participate in the Pennsylvania assigned risk program.
This program was developed to provide the mandatory insurance for high risk drivers. The state requires insurance providers who operate in Pennsylvania to participate in the program. Participating in the Pennsylvania assigned risk program should be a last resort option for drivers because these plans charge much higher rates than can be found in any non-high risk program.
Before being eligible for the plan, you must demonstrate that you have experienced a specific degree of difficulty in obtaining coverage through the normal channels. In Pennsylvania you must demonstrate that you have made three applications for vehicle insurance to three different insurance providers and have been turned down. You also must use an certified...
