What is the difference between assigned risk and non-standard auto programs?
These are two different programs that are available for those who have a hard time getting coverage.
Assigned risk auto insurance is an insurance that the state places for someone who is usually denied coverage due to the fact that he is considered a high-risk driver (perhaps because he has a DUI charge or has a number of traffic violations). The state can assign some coverage to licensed insurance companies.
You see, the state has the authority to assign high-risk drivers to these insurance companies, up to certain limits, as a condition for the insurance company to continue to operate in the state. The insurance company is forced to take on the policy, but they still retain the right to charge the premiums they deem appropriate.
With an assigned risk policy, the insurance company will only provide you with the minimum legal requirement. Also, the assigned insurance company is required to cover you for up to three years only. During this time, your bad driving record will have been removed, hopefully. After the three years, the company is free to refuse renewal of your policy.
Non-standard auto insurance is similar to a standard auto insurance product, but for high-risk drivers. If the driver is willing to pay for higher premiums, he can get the coverage he needs through the non-standard auto insurance program.
The non-standard insurance provides a wider coverage compared to an assigned risk plan. Non-standard insurance can be bought directly from the company or to the agent.
Choosing Between the Two Options
Basically, these two programs enable someone who otherwise can't get car insurance to obtain coverage so that he can drive a car, even when he is considered a high-risk driver. If you are a high-risk driver, you should carefully consider your options to check which package would best suit you.
You can ask your local DMV office whether you are eligible for an assigned risk plan. You are eligible if you have already applied with three insurance companies and they have all denied your application. You will need to coordinate with your insurance agent, who will then submit the application for you.
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