Most inexperienced drivers are placed in their state’s Assigned Risk Plan, also known in some states as the Automobile Insurance Plan, -v Reinsurance Facilities, State Funds, Joint Underwriting Associations, or just the Risk Pool. Basically, the Assigned Risk Plan was designed to insure inexperienced drivers as well as drivers with poor driving records that are considered too substandard to become insured within the regular market at standard rates. As these drivers need to be insured in some way, individual states have designed their particular risk pools, that are quite just like each other, but are called by various names.
The very first rule an unskilled driver should remember is always to avoid getting an individual policy. You may wind up in your state’s Assigned Risk Plan, learn more paying its exorbitant rates. New drivers should remember to be added to either their spouse’s or parent’s policy as a possible additional or occasional driver. You will be charged the standard rates and save a lot of premium dollars and aggravation.
For example, if you’re a single person living in your own home, you could have yourself viewed as a non–principal and occasional driver and thereby reduce your premium bill in half Remember that as an add-on to either your parent’s or spouse’s policy, your driving mistakes affect not only your own record and rates, but theirs as well. Since a moving violation can raise the overall premium by 10 percent and an at-fault accident can perform the same damage by 20-40 percent, your cautious driving will not only pay off in lower rates, but additionally in better family relationships.
For those inexperienced drivers who have no other choice but to get an individual policy and give the assigned risk rates, I suggest that you be free and your car from any bank lien so that you won’t be burdened with all the extra collision and comprehensive coverages. You’ll save the following amounts: As stated previously, inexperienced operators should drive with extra caution since they can’t afford to give the additional Ten percent penalty per moving violation nor the 20-40 percent surcharge per at-fault accident on top of their already inflated rates.
For example, some moving violations and at-fault accidents would drastically affect the rates of inexperienced single drivers in the following way: Obviously, experienced drivers don’t have the same premium problems as inexperienced drivers, but all careless and thoughtless drivers pay the same penalty of your 10 percent increment per moving violation and a 20-40 percent surcharge per at-fault accident. Therefore, it pays for all of us to drive cautiously in order to maintain our clean or nearly clean driving records.