What it Means to be Labeled “Uninsurable”

There are some drivers that can squeak past high risk auto insurers with no problem at all and others that even high risk auto insurance companies won’t touch. These individuals are often labeled “uninsurable.” To be labeled uninsurable by auto insurance companies can mean several things. It usually means that you:

•    Have been involved in an excessive number of auto accidents within a one year period
•    Have been convicted of multiple DUI/DWIs within a one to three year period
•    Have been convicted of reckless driving several times or more within a one to three year period
•    Have been denied insurance a large number of standard, non standard, and high risk auto insurance companies

If you have been labeled uninsurable by standard auto insurance companies, unfortunately this is worse than being placed in the “high risk” category. High risk drivers will pay much higher premiums than low risk drivers and they have roughly 385 non standard auto insurers to choose from. Individuals that have been labeled uninsurable by auto insurance companies have only one option – the state Automobile Insurance Assigned Risk Plan.

Each state has an Automobile Insurance Assigned Risk Plan. For high risk drivers the assigned risk plan is a last resort, but to the uninsurable, it really is the only resort. Under the Automobile Insurance Assigned Risk Plan, high risk drivers – even drivers that have been labeled uninsurable, cannot be turned down for auto insurance. The rates are extremely high, usually double or triple the national average, but even uninsurable drivers are guaranteed coverage.

To obtain auto insurance through your state’s Automobile Insurance Assigned Risk Plan, contact your Department of Motor Vehicles (DMV) to get the process started. Depending on the reasons for your status, the DMV may assign an agent that will submit an application for insurance on your behalf. Otherwise, you may have to apply on your own.

For information about your state’s Automobile Insurance Assigned Risk Plan, contact your DMV or contact your state insurance department. To locate your state insurance department, visit the National Association of Insurance Commissioners (NAIC) website for a directory of state insurance department websites.