Most inexperienced drivers are put 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 along with drivers with poor driving records who’re considered too substandard being insured in the regular market at standard rates. Because these drivers have to be insured for some reason, individual states have designed their own risk pools, which are quite just like each other, but they are called by various names.
The first rule an unskilled driver should remember is to avoid getting someone policy. You will wind up in your state’s Assigned Risk Plan, do you agree paying its exorbitant rates. New drivers should remember to be added to either their spouse’s or parent’s policy as a possible additional or occasional driver. You’ll be charged the standard rates and save yourself 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 also. Since a moving violation can increase 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 those inexperienced drivers that have no other choice but to take out an individual policy and spend the money for assigned risk rates, I would recommend that you rid yourself and your car from any bank lien so you won’t be burdened using the extra comprehensive and collision coverages. You would save these amounts: As mentioned previously, inexperienced operators should drive with extra caution since they can hardly afford to give the additional 10 % penalty per moving violation nor the 20-40 percent surcharge per at-fault accident along with their already inflated rates.
For example, some moving violations and at-fault accidents would drastically affect the rates of inexperienced single drivers inside the following way: Obviously, experienced drivers 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, it pays for all of us to drive cautiously to be able to maintain our clean or nearly clean driving records.