Most inexperienced drivers are placed in their state’s Assigned Risk Plan, commonly known as in some states as the Automobile Insurance Plan, -v Reinsurance Facilities, State Funds, Joint Underwriting Associations, or simply the Risk Pool. Basically, the Assigned Risk Plan was made to insure inexperienced drivers in addition to drivers with poor driving records that are considered too substandard to be insured within the regular market at standard rates. Since these drivers have to be insured in some manner, individual states have designed their very own risk pools, which can be quite similar to each other, but you are called by various names.
The initial rule a novice driver should remember is to avoid getting an individual policy. You’ll wind up in your state’s Assigned Risk Plan, check this out paying its exorbitant rates. New drivers should remember to be added to either their spouse’s or parent’s policy being an additional or occasional driver. You will be charged the conventional rates and save a lot of premium dollars and aggravation.
For instance, if you’re a single person living at home, you could have yourself considered a non–principal and occasional driver and thereby cut your premium bill in half Remember that being an add-on to either your parent’s or spouse’s policy, your driving mistakes affect not just 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 in addition in better family relationships.
For anyone inexperienced drivers that have no other choice but to take out an individual policy and pay the assigned risk rates, I would recommend that you free yourself and your car from any bank lien so that you will won’t be burdened using the extra collision and comprehensive coverages. You’d save the next amounts: As mentioned previously, inexperienced operators should drive with extreme care since they can hardly afford to pay the additional 10 percent penalty per moving violation nor the 20-40 percent surcharge per at-fault accident on top of their already inflated rates.
For example, a series of moving violations and at-fault accidents would drastically get a new rates of inexperienced single drivers inside 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 a 10 percent increment per moving violation plus a 20-40 percent surcharge per at-fault accident. Therefore, it’s good for all of us they are driving cautiously in order to maintain our clean or nearly clean driving records.