For high-risk drivers who are having trouble qualifying for conventional car insurance.
Nearly all states have minimum car insurance requirements, so getting coverage is a necessity for most drivers. However, high-risk drivers often have trouble finding a company who agree to provide reasonable insurance because of their accident history, speeding tickets, points on their license and other factors.
In this case, the Automobile Insurance Plan Service Office (AIPSO) can help you find what’s called “assigned risk insurance” in your state. You’ll get matched with a provider who’s willing to cover you for a reasonable rate. It’s a great option for drivers who have trouble finding insurance elsewhere.
|Description||If you’ve been denied for voluntary car insurance, AIPSO can connect you with a state-assisted car insurance program to get you back on the road.|
|States served||All 50 states|
|Pay schedule||Depends on provider|
|Claims methods||Depends on provider|
|New car protection||Depends on provider|
- You can drive with legal insurance.
- You’ll be treated like any other customer.
- You can work on rebuilding your credit or driving history
- Higher insurance premiums.
- Limited policy options.
Who is AIPSO best for?
AIPSO is for anyone who is unable to get car insurance directly through a private insurance company because they are considered a high-risk driver.
There are a number of reasons you might have difficulty getting conventional insurance, which could include:
- Having an extensive accident or claim history.
- Causing a life-threatening accident or serious injury.
- Convicted of DUI/DWI.
- Received several traffic violations.
- Having a history of insurance violations.
- Having poor credit or no credit history.
- Driving a high-performance car.
- Being a young driver.
What is AIPSO?
AIPSO is a nonprofit organization that helps drivers who’ve been denied conventional car insurance get assigned risk insurance. This is also sometimes called the “residual” or “shared market.” Most states that have minimum car insurance requirements provide a state automobile insurance plan option to drivers who are unable to get insurance on their own. Typically, all providers that offer insurance in that state are required to participate in this program.
Assigned risk insurance cases are evenly distributed among each insurance company based on the number of conventional policies they write each year. Once a high-risk driver is assigned to an insurance company with the help of AIPSO, that company insures them and assume the risks or profits that come along with that policy, just like with any other driver.
Case study: Mitch gets car insurance with the help of AIPSO
Mitch is a high-risk driver living in New Jersey who’s been denied car insurance from several companies due to his accident history. Because of this, he goes to AIPSO’s website, becomes a registered user and downloads the appropriate assigned risk forms needed for his state. AIPSO connects Mitch with a local insurance agency that’s required to offer him coverage. Mitch’s assigned company will provide him with an insurance policy and process any claims directly.
What car insurance coverage does AIPSO offer?
AIPSO itself doesn’t provide car insurance, but it can help you obtain car insurance from a company in your state, even if you’ve been denied coverage. Your coverage options and insurance premium will vary based on your risk factors and the state minimum requirements where you live.
These are the typical car insurance coverages that are available through AIPSO providers:
- Bodily injury liability. If you’re found legally responsible for an accident, this covers the cost of medical bills and funeral costs associated with the accident. Most states require this coverage.
- Property damage liability. If you’re legally responsible for an accident, this covers the cost of damages to vehicles and other property. Most states require this coverage.
- Collision. If your car is damaged in an accident, collision coverage pays for the cost of repairs. While not usually required by the state, most banks will require collision coverage if you’re making payments on your vehicle.
- Comprehensive. Coverage for anything other than collision damage, such as theft, fire or vandalism. Most states don’t require this coverage, but it may be required by your bank if you’re financing your vehicle.
- Uninsured or underinsured motorist. Most states don’t require this coverage, but it may be available to you through assigned risk insurance. This covers the costs of personal injury or property damage if you’re in an accident caused by a driver with no or inadequate insurance.
AIPSO car insurance rates
Although the insurance provider that you’re assigned through AIPSO must provide you coverage, you’ll probably pay a much higher rate than the standard policy. As with any other insurance policy, your rates are determined by a number of factors that include your age, gender, location and the vehicle you drive.
Since insurance premiums are usually higher for high-risk drivers, you’ll need to weigh the pros and cons of getting additional coverage options beyond what your state requires.
What discounts can I get with AIPSO?
Unfortunately, drivers in the assigned risk pool are unlikely to qualify for any special discounts with their assigned insurance provider.
However, there are some ways you can get out of this pool and return to buying conventional or voluntary insurance:
- Avoid traffic violations and accidents.
- Repair your credit.
- Take a defensive driving course.
- Drive a moderately-priced car equipped with safety features.
Many states offer incentives for insurance companies who move assigned risk drivers to a voluntary policy, so check with your insurance provider about ways to reduce your risk and earn discounts on your policy.
What’s not covered by AIPSO?
Each state has a different set of requirements to qualify for assigned risk insurance. In many states, a driver has to be denied voluntary insurance from more than one provider before qualifying for assigned risk insurance.
If you do qualify, AIPSO can help you find a local agent in your area, but your insurance premium is still affected by factors like your age, gender, location and driving history.
Pros and cons
- You can drive with legal insurance. Using your state’s car insurance program should be a last resort, but if you can’t get standard insurance, this option will keep you legally on the road.
- You can work on rebuilding your credit or driving history. While you’re in the assigned risk pool, you can work on improving your credit score and driving history to lower your rates in the future.
- Higher insurance premiums. If you have to take advantage of this program, you’ll probably face much higher premiums than a standard policy.
- Limited options. You don’t get to choose which insurance company you’re assigned to work with.
How to apply for AIPSO high-risk insurance coverage
Before applying for your state’s car insurance program through AIPSO, try to get standard insurance from several different insurance companies. If you’re still denied, then you can:
- Go to AIPSO’s site and register as a user.
- Click the Plan Sites tab on the homepage and select your state from the dropdown menu.
- There, you’ll find all the information and forms necessary to apply for insurance in your state.
- Visit the AIPSO site, enter your ZIP code and select Auto under the Get a Free Quote Now widget and click Get a Quote.
- Add driver information for each person you’d like to insure. Enter your personal information and license details, then click No if you are done adding drivers.
- Add your vehicle information or enter your VIN, then click No, unless you’re adding another vehicle.
- Review your quotes, then click Buy if you’re interested in moving forward with purchasing coverage.
- Enter your email, home address and employer’s address, then click Continue.
- Enter your driver’s license info and other driver details, then click Continue.
- Enter any other details and payment info when prompted, then continue to purchase coverage.
If you have questions, you can contact AIPSO’s office at 401-946-2310.
What info do I need to apply?
It’s free to become a registered user on AIPSO’s site. To open your account, you’ll need to enter your:
- First and last name
- Email address
- Mailing address
- Phone number
When you’re connected with an insurance agent, you’ll need to provide information about yourself and your vehicle, such as:
- Your name and address
- Your contact information
- Your car’s VIN or the make, model and trim
- Information for any drivers you’d like to add to your policy
How do I find a AIPSO agent near me?
AIPSO provides coverage to residents throughout Illinois and Indiana. Here’s how to locate your nearest branch:
- Visit the AIPSO site.
- Scroll down to the bottom of the page and click Contact Us.
- Locate the phone number for your area and call to speak with an agent from your nearest branch.
How do I find an assigned risk insurance agent near me?
Go to AIPSO’s site and click on Plan Sites, then select your state from the dropdown menu. You can view the appropriate contact information for an agent near you.
How to file an auto insurance claim with AIPSO
Unfortunately, you won’t be able to file claims online. Instead, call the customer service line to speak with a representative to get started.
How to make a claim
If you need to file a car insurance claim with the insurance provider that you’ve been assigned through AIPSO, simply follow that provider’s specific protocol like you would with a standard policy. Most insurance companies allow you to easily file a claim online or over the phone.
In either case, you’ll probably need to provide this information:
- Your policy number.
- The date, time and location of the accident or incident.
- The names, addresses and telephone numbers of registered owners, injured people, occupants of other cars and witnesses.
- Description and license numbers of the other cars involved.
- Photos taken after the accident or incident.
- Police report number, if applicable.
How to contact AIPSO
To get in touch with AIPSO, you can:
- Call 401-946-2310 for general questions.
- Call 888-424-0026 for web support.
Does AIPSO offer other types of insurance?
No, AIPSO exclusively deals with high-risk drivers who are unable to obtain standard insurance to meet their state’s minimum insurance requirements. Before getting assigned risk insurance through AIPSO and your state’s car insurance program, you’ll probably be required to try to get standard insurance on your own first. If you can get voluntary insurance, you won’t qualify for state-assistance insurance.
What are some alternatives to AIPSO?
If you’re having trouble getting insurance for a high-performance luxury vehicle, you might try getting a quote from an insurance company like Chubb that specializes in that area. Otherwise, try to get a quote from larger national companies like Geico, Progressive and Allstate, which may be more willing to accept a high-risk driver than a smaller local agency.
Compare car insurance providers
AFor drivers who have been classified as high-risk by insurance companies and are unable to get a standard policy, there is hope. Working with AIPSO can help you get a state-assisted car insurance policy so you can get back on the road and work your way out of the assigned risk insurance pool.
Before you spring for your state’s insurance program, compare car insurance providers to see if you’re able to get voluntary insurance at a lower rate.