Auto Insurance Through The Pennsylvania Assigned Risk Program

By R Daniel Williams

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 agent to help you make application into the program.

Once in the program, you may qualify for the ‘clean risk rate.’ This rate is lower than the normal assigned risk rate, but has certain specific criteria that must be met. For example, to qualify for the clean risk rate, all licensed drivers in your household must not have had an accident within the preceding 36 months other than those for which your auto insurance company paid an amount not exceeding $1,150. In addition, all drivers must not have received more than three traffic violation points in the preceding 36 months.

If you are a driver who has found themselves in need of the Pennsylvania assigned risk program, know that you won’t have to pay these rates forever. If you make all your premium payments on time and keep a clean driving record, you should be able to obtain insurance through the normal channels within a three year period of participating in the program.

Be sure you’ve exausted all other options before you turn to the pennsylvania assigned risk plan.There are many other companies who specialize in non-standard auto insurance and can offer great deals.

About the Author: Owner and founder of the Williams Agency providing low cost Pennsylvania auto insurance since 1986

low cost pennsylvania auto insurance

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