Reader’s Question:

What is the difference between assigned risk insurance and non-standard auto insurance in Phoenix Arizona?

Aaron

Phoenix, AZ

Auto insurance placed by the state is called assigned risk auto insurance. Most states have some sort of assigned risk plan to assure that you can get insurance coverage. An auto insurance agent first submits your application to the state’s assigned risk plan. Then, the state assigns the application to a licensed insurance company for issuance. The insurance agent may or may not have a contractual relationship with the assigned carrier. In most cases, the assigned carrier is required to offer insurance for three years only.

Your local Department of Motor Vehicles (DMV) can tell you if you need an assigned risk plan. Make sure to contact your Phoenix, Arizona agent and let him know if ever you decide to get an assigned risk plan. Some states may require you to buy the assigned risk plan so that you will be eligible to drive and buy an insurance policy from a private company
As for non-standard auto insurance, it is the insurance purchased from an agent or directly from an insurance company. If you purchased insurance from an agent, that agent has a contractual relationship to the company issuing the policy. The use of non-assigned insurance plans is simply to ensure that you will get wide coverage from different companies.
In states where purchasing an assigned policy is not required, you may shop for a non-standard insurance policy directly from private companies or their agents. You may contact auto insurance companies and see if you qualify for a non-standard policy and if your state allows it.

Tags: Car Insurance Company