Most inexperienced drivers are put in their state’s Assigned Risk Plan, also known in some states because the Automobile Insurance Plan, -v Reinsurance Facilities, State Funds, Joint Underwriting Associations, or simply just the Risk Pool. Basically, the Assigned Risk Plan was made to insure inexperienced drivers along with drivers with poor driving records who’re considered too substandard to become insured within the regular market at standard rates. Since these drivers have to be insured for some reason, individual states have designed their own risk pools, that are quite much like each other, but you are called by various names.
The first rule an inexperienced driver should remember would be to avoid getting an individual policy. You will wind up in your state’s Assigned Risk Plan, additional resources paying its exorbitant rates. New drivers should remember to be added to either their spouse’s or parent’s policy as an additional or occasional driver. You will be charged the typical rates and may well avoid a lot of premium dollars and aggravation.
For instance, 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 trim 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 boost the overall premium by 10 percent and an at-fault accident are capable of doing the same damage by 20-40 percent, your cautious driving will not only pay off in lower rates, but also in better family relationships.
For all those inexperienced drivers who’ve no other choice but to take out an individual policy and pay the assigned risk rates, I propose that you rid yourself and your car from the bank lien so that you won’t be burdened using the extra collision and comprehensive coverages. You would save the following amounts: As mentioned previously, inexperienced operators should drive with extreme care since they can’t afford to give the additional 10 percent penalty per moving violation nor the 20-40 percent surcharge per at-fault accident together with their already inflated rates.
For example, a series of moving violations and at-fault accidents would drastically modify the rates of inexperienced single drivers in the following way: Obviously, experienced drivers do not 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, its smart for all of us to drive cautiously in order to maintain our clean or nearly clean driving records.