Most inexperienced drivers are placed in their state’s Assigned Risk Plan, also known in some states since the Automobile Insurance Plan, -v Reinsurance Facilities, State Funds, Joint Underwriting Associations, or simply the Risk Pool. Basically, the Assigned Risk Plan is built to insure inexperienced drivers as well as drivers with poor driving records who are considered too substandard to become insured within the regular market at standard rates. Because these drivers must be insured in some manner, individual states have designed their particular risk pools, which are quite just like each other, but they are called by various names.
The initial rule an unskilled driver should remember would be to avoid getting an individual policy. You will wind up in your state’s Assigned Risk Plan, do you agree paying its exorbitant rates. New drivers should make every effort to be added to either their spouse’s or parent’s policy being an additional or occasional driver. You will end up charged the standard rates and may well avoid a lot of premium dollars and aggravation.
For example, if you’re a single person living in your own home, you could have yourself classified as a non–principal and occasional driver and thereby cut your premium bill by 50 percent Remember that as an add-on to either your parent’s or spouse’s policy, your driving mistakes affect not merely 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 do 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 that have no other choice but to obtain an individual policy and pay the assigned risk rates, I would recommend that you be free and your car through the bank lien so that you won’t be burdened with the extra collision and comprehensive coverages. You’d save these amounts: As stated previously, inexperienced operators should drive with extreme caution since they can hardly afford to spend the money for additional 10 % penalty per moving violation nor the 20-40 percent surcharge per at-fault accident along with 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 in the following way: Obviously, experienced drivers don’t have the same premium problems as inexperienced drivers, but all careless and thoughtless drivers spend the money for same penalty of your 10 percent increment per moving violation along with a 20-40 percent surcharge per at-fault accident. Therefore, it pays for all of us they are driving cautiously so that you can maintain our clean or nearly clean driving records.