Insurance pools available nationwide provide auto insurance to high-risk customers who can’t get insured in the normal marketplace.
Every insurer licensed in the state must participate in an assigned risk plan. When someone has a poor driving record and can’t buy insurance in the regular market, their state of residence assigns an insurer to them, ensuring they can comply with state law and get the insurance protection they need.
Compelled to insure someone who carries more risk and is more likely to file claims, the insurer must then charge more for an assigned risk plan and recoup the difference by raising rates on other customers.
Though the insurance cost may be high through an assigned risk plan, this is sometimes the only way a person with a bad driving record can get insured.