How to Get Cheap Assigned Risk Auto Insurance

Last Updated on December 11, 2025

Certain high-risk drivers are required to get assigned risk auto insurance. Just because you’re in the assigned risk pool, however, doesn’t mean you need to spend a fortune.

Below, we explain how assigned risk auto insurance works, who qualifies, what it typically costs, and the best ways to get the cheapest assigned risk coverage you can.

Key Takeaways

• Assigned risk auto insurance (the residual or “high-risk” market) is a state-run system that assigns drivers to participating insurers when they can’t get coverage in the voluntary market.
• Most states use an Assigned Risk Plan, while a few use joint underwriting associations, reinsurance facilities, or a state-run fund such as Maryland’s MAIF.
• Assigned risk policies are usually much more expensive than standard coverage, and you generally can’t shop different companies within the plan for a lower base rate.
• You can keep assigned risk premiums as low as possible by choosing liability-only coverage when appropriate, improving your credit and driving record, avoiding lapses, and regularly checking if you qualify to move back into the standard market.

What Is Assigned Risk Auto Insurance?

Assigned risk auto insurance is a type of high-risk car insurance for drivers who are viewed as too risky to insure in the normal (“voluntary”) market. A driver with lots of speeding tickets, traffic violations, DUIs, or at-fault car accidents, for example, may be required to get coverage through their state’s assigned risk or “residual” auto insurance program.

With assigned risk insurance, you don’t choose a company and hope they’ll accept you. Instead, you (or your agent) apply through your state’s assigned risk plan. The plan then assigns you to a participating insurance company, and that company must provide coverage as long as you meet the eligibility rules and pay the premium.

For some high-risk drivers, this is the only type of car insurance they can get that satisfies state insurance requirements.

Nationwide, residual auto insurance markets make up well under 1% of all private passenger auto policies, but in a few states a much larger share of drivers use these high-risk pools.

How Does Assigned Risk Auto Insurance Work?

Each state has its own assigned risk auto insurance system, also known as the residual, shared, or high-risk market. This system exists to make sure drivers who can’t find insurance in the voluntary market can still buy the legally required coverage.

Here’s how it typically works:

• You apply through your state’s assigned risk plan (often via an agent or online).
• The plan randomly assigns you to a participating insurer in proportion to each company’s market share.
• The assigned insurer must accept you and issue a policy if you’re eligible.
• Your rates are higher than they would be for a similar driver in the standard market, because the pool is made up of higher-risk drivers.

The unique thing about assigned risk auto insurance is that insurers must accept eligible policyholders. In the voluntary market, a company can simply refuse to insure you. In the assigned risk market, they don’t get to decide on a case-by-case basis; participation is required as a condition of writing auto insurance in the state.

Drivers can usually use the assigned risk pool to get liability coverage for all types of vehicles, including:

• Commercial vehicles
• Motorcycles
• Motorhomes and campers
• ATVs
• Snowmobiles
• Golf carts

Some plans also allow you to add collision and comprehensive coverage for physical damage to your own vehicle, usually at a steep extra cost.

Types of Residual Auto Insurance Markets by State

Every state has some way for high-risk drivers to get car insurance. The systems vary, but they generally fall into four categories:

Assigned Risk Plan (ARP): This is the most common system. In most states, high-risk drivers are placed into an Automobile Insurance Plan that is administered by a state-created organization or a service office. Drivers apply through the plan, and policies are assigned to insurers in proportion to each company’s share of the voluntary market.

Joint Underwriting Association (JUA) / State-Mandated Pooling: A small number of states use JUAs or similar pooling systems. All auto insurers doing business in the state share premiums, losses, and expenses from high-risk business outside the voluntary market. Florida, Hawaii, Michigan, Missouri, and New York are examples of states that use this type of mechanism.

Reinsurance Facilities: Two states – North Carolina and New Hampshire – use reinsurance facilities for auto. Under this system, the insurer must accept all eligible drivers, but can later “cede” (transfer) certain policies to the reinsurance facility. Profits and losses from that facility are then shared among all auto insurers in the state.

State-Funded System: Maryland uses a state-operated fund to serve its auto residual market. The Maryland Automobile Insurance Fund (MAIF) provides coverage to drivers who cannot obtain insurance from private companies. Private insurers do not write these policies directly, but they may be assessed to help cover any shortfalls in the fund.

The details differ by state, but the goal is the same everywhere: make sure drivers who truly can’t get coverage in the voluntary market still have access to basic auto insurance.

Do You Qualify for Assigned Risk Auto Insurance?

Each state sets its own eligibility rules, but assigned risk auto insurance is meant to be a last resort, not a shortcut for drivers who just don’t feel like shopping around.

Generally, you may qualify if:

• You have been declined or non-renewed by at least one (and often two or more) insurance companies in the last 60 days; and/or
• You can only find car insurance policies offered at a significantly higher rate than your state’s assigned risk plan; and
• You have a valid driver’s license and your car is registered in the state.

For example, if your state’s assigned risk premiums would be $4,000 per year and the cheapest policy you can find in the voluntary market is $5,500 per year, you may be allowed to use the assigned risk pool.

Common reasons drivers end up in the assigned risk market include:

• Multiple at-fault accidents or serious violations on your driving record
• One or more DUIs or DWIs
• Frequent at-fault claims in a short period
• A history of non-payment or policy cancellations for non-payment
• Very little driving history (inexperienced drivers) plus other risk factors
• Serious violations combined with a recent lapse in coverage

Before an assigned risk plan will accept you, you’re usually required to show that you’ve tried – and failed – to get reasonably priced coverage from ordinary insurers or non-standard/high-risk companies in the voluntary market.

How Much Does Assigned Risk Auto Insurance Cost?

Assigned risk auto insurance is almost always more expensive than comparable coverage in the standard market.

Because high-risk drivers file more claims, high-risk and assigned-risk policies can cost dramatically more than average – often 50% to 200% higher than what a similar driver would pay with a clean record. In some states and situations, drivers in a high-risk pool might pay around three times the national average for minimum coverage.

How much you’ll pay depends on many of the same factors that affect any auto policy, including:

• Your driving record: Recent DUIs, at-fault crashes, and serious speeding tickets can sharply increase your rates.
• Your age and experience: Young drivers in an assigned risk plan are especially expensive to insure.
• Your vehicle and usage: Expensive or powerful vehicles, high annual mileage, and commercial use all raise premiums.
• Your location: Some ZIP codes have higher rates of claims, theft, and lawsuits, which pushes premiums higher.
• Your credit (in states that allow it): Poor credit often leads to higher premiums, while good credit can help lower them.

The key thing to remember is that assigned risk insurance is designed to be a safety net, not a discount option. You’re paying extra because you’re statistically more likely to cost the insurance system money.

Assigned Risk Auto Insurance Prices Are Fixed Within the Plan

Assigned risk auto insurance doesn’t work like ordinary car insurance where every company files its own rates and you can shop around for the cheapest one.

In many states, the assigned risk or Automobile Insurance Plan sets a standard rate structure for drivers in the pool. Any insurer participating in that plan generally uses the same rate schedule for the same driver profile and coverage. In other words, if two different companies are writing policies for your state’s assigned risk plan, you usually can’t get a lower base premium just by switching from one assigned risk company to another.

However:

• You will not necessarily pay the same rate as other drivers in the assigned risk pool. Your premiums still vary based on factors like your age, driving record, vehicle type, prior insurance, and ZIP code.
• You’ll have different policy options within your assigned risk plan. You can usually choose between basic liability limits (the minimum required by law) and higher limits, and you may be able to add collision and comprehensive coverage.
• Some insurers may still apply different billing fees, payment plans, or optional coverages, which can change your total out-of-pocket cost slightly.

The standard assigned risk period is often around three years. After maintaining continuous coverage and improving your risk profile during that time, you may be able to re-enter the voluntary market and shop for cheaper, standard-market policies.

How to Get the Cheapest Assigned Risk Auto Insurance Policy

Yes, assigned risk auto insurance is expensive and plan prices are largely fixed. However, you still have several levers you can pull to get the lowest possible premium – and even to avoid the assigned risk pool altogether.

1. Try to Avoid the Assigned Risk Pool if You Can

Before applying to your state’s assigned risk plan, it’s often worth checking:

• Non-standard/high-risk insurers: Many companies specialize in high-risk drivers and may insure you directly at a lower cost than the assigned risk pool.
• Usage-based or telematics programs: Some insurers use driving apps or devices that can help offset past violations if you demonstrate safe driving now.
• Local independent agents: Agents who work with multiple insurers often know which companies are most lenient with specific types of violations or credit issues.

If you can qualify for non-standard insurance at a lower rate than the assigned risk plan, you’ll usually save money and have more coverage options.

2. Choose Basic Liability Instead of Full Coverage

Assigned risk auto insurance can consist of basic liability coverage or full coverage (liability plus collision and comprehensive).

Most states only require liability coverage by law. No state requires you to carry collision or comprehensive unless a lender or leasing company demands it.

If you:

• Own an older car outright, and
• Could afford to repair or replace it yourself,

then a liability-only policy may make sense. Insurance plans with only basic liability coverage will be the cheapest available option. If you want cheap assigned risk auto insurance, look for a liability-only plan and avoid full coverage plans with comprehensive and collision coverage unless you truly need them.

If you do keep full coverage, consider:

• Choosing higher deductibles for collision and comprehensive
• Dropping extras like rental reimbursement and roadside assistance if you can live without them

3. Change Your ZIP Code (If It Makes Sense)

Insurers charge different premiums based on your ZIP code. Some ZIP codes have higher rates of break-ins, accidents, lawsuits, and severe weather. Others are lower-risk and cheaper to insure.

You can’t legally misrepresent where your car is garaged, but:

• If you’re already planning to move, choosing a lower-risk ZIP code can reduce premiums.
• If you live between two areas (for example, you split time between addresses), ask your agent how rates differ.
• If a spouse or partner with a safer address is the primary owner of the car, listing the correct garaging address in that safer area can help – as long as it’s accurate.

Important: Never lie about your garaging address. Giving a false location can lead to denied claims, policy cancellation, or even insurance fraud charges.

4. Improve Your Credit (Where Allowed)

In many states, your credit score impacts car insurance premiums. Insurers use a credit-based insurance score (also known as an auto insurance score) to predict how likely you are to file claims or miss payments.

If your state allows credit to be used in rating, improving your credit can help lower your assigned risk premiums over time. Helpful steps include:

• Paying all bills on time
• Lowering credit card balances
• Keeping old accounts open to lengthen your credit history
• Checking your credit reports for and disputing any errors

5. Limit Claims and Drive Defensively

Once you’re in the assigned risk pool, your immediate goal should be to avoid anything that makes you look riskier:

• Obey speed limits and traffic laws – another ticket will hurt you more now than it would a standard-market driver.
• Consider a defensive driving course if your state or insurer offers a discount for it.
• Think carefully before filing small claims; frequent small claims can keep you labeled as high-risk.

Even in the high-risk pool, some plans offer “good driver” or accident-free discounts after a certain period of clean driving.

6. Avoid Lapses in Coverage

Going without insurance and then trying to start a policy again later is a major red flag for insurers. A lapse in coverage can keep you stuck in the high-risk category, or make it harder to leave the assigned risk pool when you otherwise would qualify.

Whenever possible, maintain at least the minimum required coverage continuously – even if you change cars or move.

7. Wait It Out (and Re-Shop Regularly)

As you get older and your driving history gets more distant, serious violations and at-fault accidents fall further into the past, and your risk profile improves. For many drivers, the biggest premium drops happen when:

• DUIs, major violations, or at-fault accidents hit their 3- or 5-year anniversaries;
• You reach your mid- to late-twenties and have several years of clean driving; and
• You’ve maintained insurance without lapses and paid on time.

Each year – especially as violations age off your record – get quotes from standard and non-standard insurers in the voluntary market. You may be able to leave the assigned risk pool earlier than you expect.

How to Get Out of the Assigned Risk Pool

Assigned risk insurance should be treated as temporary. The real savings come from improving your risk profile enough to qualify for cheaper, voluntary-market coverage.

Steps to move out of the assigned risk pool include:

• Drive violation-free: Avoid new tickets or at-fault crashes, and follow all license restrictions.
• Keep continuous coverage: Don’t let your policy lapse for non-payment, and avoid frequent cancellations and rewrites.
• Improve your credit (if applicable in your state): Better credit can help you qualify for more companies and lower rates.
• Ask your agent to re-shop regularly: Every 6–12 months – or whenever a major violation reaches its third or fifth anniversary – have your agent check voluntary-market options.
• Consider a different vehicle: Switching from a high-value or high-performance car to a safer, cheaper-to-insure vehicle can help you qualify with more insurers.

Eventually, if enough time passes without new problems, you should be able to move from high-risk to standard car insurance and pay much closer to your state’s average rates.

FAQs on Cheap Assigned Risk Auto Insurance

Final Word on Finding Affordable Assigned Risk Insurance

Assigned risk auto insurance prices are higher than standard policies and are largely set by each state’s plan, not by individual insurance companies. You can’t “bargain hunt” within the assigned risk pool the way you can in the voluntary market.

However, your assigned risk premiums are still affected by many of the usual factors – including your age, driving record, location, credit (in some states), and coverage choices. If you want the cheapest possible assigned risk car insurance:

• See if you qualify for non-standard coverage outside the pool first.
• Consider carrying only basic liability coverage if it makes financial sense.
• Work on your driving record, credit, and continuity of coverage.
• Re-shop frequently so you can leave the assigned risk pool as soon as you’re eligible.

Assigned risk auto insurance is never going to be truly cheap. But by using the strategies above, you can minimize what you pay while you rebuild your record and work your way back into the standard market.