Glossary

Assigned risk plan

A state program that guarantees basic liability coverage to drivers no insurer will voluntarily cover, by assigning them to insurers in the state.

Also called: automobile insurance plan, auto insurance plan, assigned risk pool

An assigned risk plan is a way for drivers who cannot buy car insurance in the regular market to get at least the coverage the law requires. Insurers that sell auto coverage in a state with such a plan must take part. When an eligible applicant has been turned down by the voluntary market, the plan assigns that driver to a participating insurer, generally in proportion to each company's share of the state's auto insurance business.

It is the most common form of the residual market, the insurance market of last resort. A few states use other structures, such as a joint underwriting association or a reinsurance facility, but the purpose is the same: no legal driver should be unable to get insurance.

Coverage is typically limited to state minimum coverage or modestly higher limits, and rates are usually higher than the voluntary market charges. That makes the plan a fallback, not a bargain. Many drivers with tickets, a DUI or a lapse can find a policy for less from a company that specializes in nonstandard auto insurance, so shop that market first. Licensed agents can submit applications to the plan, and after a period of clean driving you may be able to move back to a standard policy.

Last reviewed October 4, 2026

In the index now

Related terms

Residual market State-created arrangements that guarantee car insurance to drivers no insurer will cover voluntarily, such as assigned risk plans. High-risk driver A driver insurers expect to cost more in claims because of a DUI, tickets, crashes, a coverage lapse, little experience or similar factors. Nonstandard auto insurance Coverage sold to drivers that standard insurers decline or price steeply, such as those with DUIs, many tickets, lapses or little license history. Minimum coverage The least car insurance a state lets you carry to drive legally, usually liability coverage at set limits and sometimes PIP or uninsured motorist coverage. SR-22 A form an insurer files with the state to certify that a high-risk driver carries the required liability coverage, often for about three years.

Related guides

Assigned risk plans: insurance of last resort How state assigned risk plans and other residual market programs insure drivers no company will take, who qualifies, what it costs and how to apply. High-risk car insurance: options when insurers say no What makes a driver high risk, the three places to find coverage after a refusal (standard, nonstandard, the state plan), and how to get back to normal rates. State low-cost auto insurance programs Which states run low-cost car insurance programs, who qualifies for California's CLCA and New Jersey's dollar-a-day SAIP, and what to do if your state has none.

Related insurers

NYCM Insurance Family-managed New York mutual founded in 1899, selling auto, home and umbrella coverage only in New York through about 1,000 independent agents.