Assigned Risk

Written by  //  June 22, 2011  //  Insurance Glossary: A-D, Insurance Terms  //  No comments

When a driver cannot obtain insurance from the voluntary insurance market (preferred,standard and nonstandard insurance companies), because of an unsatisfactory driving history, he or she will be assigned to a specific insurance company under an assigned risk plan. That insurance company must then provide the minimum liability coverage required by the state. These policies are more expensive and provide minimum liability coverage only, no physical damage coverage (comprehensive and collision).

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