How to Decide Between Assigned Risk and Non-Standard Car Insurance


Find out from your state office if you need an assigned risk plan. The local Department of Motor Vehicles (DMV) can help you find this information. Some states require you to buy the assigned risk plan so that you are eligible to drive and buy an insurance policy from a private company. The use of non-assigned plans is simply to ensure you will get wide coverage from the companies. The premium is likely to be high. There will be times when you will have to buy an assigned risk policy.


Contact your agent and let him know you need an assigned risk plan. The agent will submit an application on your behalf. The state will then process your application and assign the policy to a licensed insurance company for a minimum duration of three years. This arrangement is required if there has ever been a Driving While Intoxicated (DWI) or Driving Under Influence (DUI) proceeding or other court action against you making it difficult to get an insurance policy again. Some agents may have contractual agreements with the assigned companies.


Get information about non-standard insurance programs. If you are convicted for claims or violations, you will need to re-apply for insurance and it may be cancelled. In states where buying an assigned policy is not mandatory, you may shop for a non-standard insurance policy directly from private companies or their agents.


Contact companies and see if you qualify for a non-standard policy and if your state allows it.

Tips and Warnings

  • Check the coverage type under both kinds of policies. You will have to choose one.
  • As premium rates vary, base your buying on how much money you can save.
  • Shop around for quotes as both types of insurance attract a high premium. The more quotes you get, the better.