Assigned risk

Assigned risk is a driver of a motor vehicle or class of such drivers who would be denied insurance coverage by insurance companies but are required to be covered under U.S. state law.[1]

Motor vehicle insurance

The state government, usually the Department of Motor Vehicles, assigns the risky motorists to automobile insurance companies.[2]

High risk drivers are often undesirable to insurance companies, and may not be able to purchase insurance through conventional means.[3] They are considered high-risk because of numerous speeding or other traffic tickets, or a recent history of motor vehicle accidents, or in states that have a point system, accumulation of so many points. The state DMV point system may be different from the insurance companies' point system.[4]

Several states in the U.S. have such assigned risk systems.[5] New York is a typical system.[6] The MVAIC, or Motor Vehicle Accident Indemnity Company, may assign high-risk drivers, and pays for victims of uninsured or underinsured motorists.[7] Uninsured means the driver or owner of a motor vehicle has no insurance at all, while an underinsured person has insurance, but the coverage is insignificant compared to the potential damages accrued from a tort lawsuit.[8][9]

See also

• Insurance
• Insurance companies
• Motor vehicle
• Surety
• Underinsured
• Workers' compensation

References

1. See Free Dictionary, citing the American Heritage Society dictionary.
2. Ballentine's Law Dictionary, at 36.
3. "See the Rupp's definition on the CCH website". Archived from the original on 2007-04-30. Retrieved 2007-04-12.
4. Under N.Y. Law, a driver can be suspended after accumulating 11 points in 18 months:
5. For example, New York, see article text, California: and Minnesota:
6. N.Y. Insurance Law, Article 52; to locate the law online, search under "Bill search and Legislative materials" at under INC, article 52.
7. MVAIC web site
8. Notice of intent Archived January 24, 2007, at the Wayback Machine
9. MVAIC forms

External sources