Options If You Can't Find Traditional Auto Insurance

In almost every state, drivers are required to carry auto insurance. However, there may be some situations where a driver is not able to acquire auto insurance through traditional means. Perhaps the driver's record is so poor that he is too high a risk for any private auto insurer to want to take on. Perhaps the driver's car is so valuable that a traditional private auto insurer is not willing to cover it. Perhaps the driver has not been driving long enough, or has now owned a car long enough to establish a record that will let insurers know what kind of risk he is.

"High Risk" Auto Insurance Policies

If you can't get a traditional policy, it does not mean that you cannot drive a car. One possibility is to seek out private insurance companies specializing in high-risk drivers. Just like a loan agency that offers loans to borrowers with bad credit, a high risk auto insurer extends insurance coverage to those who have bad driving records, or to those who have high-performance automobiles or who live in an area where damage to their car is exceedingly likely.

Just as a high-risk lender will offer a loan at sub-prime rates, you can expect that the premiums for high-risk auto insurance policies will be higher than normal. However, since you are required to carry auto insurance, the alternative may be not driving at all. Your state insurance department will be able to provide you with information on companies that provide this type of auto insurance.

Assigned Risk Pool

If a high-risk policy is not for you, your other option is joining the assigned risk pool for your state. All auto insurers who operate in a given state are required to participate in the assigned risk pool. The level to which they must participate is in proportion to how much business the company does in that state. Under the assigned risk pool, the insurer is obligated to accept the drivers they are assigned, albeit at a higher premium than that assessed on a standard policy. Information about the assigned risk pool for your state can also be found through your state insurance department.

Although both of these options will probably result in higher premiums than normal, they are both much better options than driving without insurance. In addition to being illegal, you can be financially wiped out if you are in an accident without insurance. If you cannot obtain traditional insurance, either do not drive until you can, or take advantage of one of the insurance options listed above.