Consumer Resources for New York Car Insurance Plans.
Welcome NY State Assigned or High Risk drivers. We understand the concerns that you have trying to get car insurance in NY when you have had a few tickets or accidents or even some credit problems that may put you and your family in need of a State Mandated Insurance Plan to secure insurance coverage
The Insurance Information and Enforcement System is a system used by many Department of Motor Vehicles agencies to track people who might be driving without auto insurance. Since many jurisdictions forbid uninsured driving, a system like this is necessary to keep track of any applications and cancellations of policies. The system was created largely because many people try to trick the DMV into thinking they're keeping their car insured by registering a car with a policy and then cancelling the policy soon after to keep the plates.
Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance people can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents. An insurance company may declare a vehicle totally destroyed ('totaled' or 'a write-off') if it appears replacement would be cheaper than repair.
Assigned high risk insurance means a driver of a motor vehicle, or a class of such drivers, who would be denied insurance coverage by insurance companies, but are required to be covered under U.S. state law. The state government, usually the Department of Motor Vehicles, or an appointed administrator, assigns the risky motorists to auto insurance companies servicing higher risk customers..
The risky drivers are undesirable for some reason, and can not purchase insurance through regular market companies. They are considered high-risk or assigned risk because of numerous speeding or other traffic tickets, or a recent history of motor vehicle accidents, or in states that have a point system, accumulation of so many points. The state DMV point system may be different from the insurance companies' point system.
NYAIP-PAIP-CAIP-AIP Assigned Risk or High Risk Auto-Truck-Bus residual insurance markets consists of licensed drivers unable to purchase auto insurance through the Voluntary Market due to a variety of factors, such as their driving history, accident history or status as a first-time driver. The Assigned Risk or High Risk Auto Insurance Plans often charges higher rates in your state, and is a last resort for licensed drivers that cannot obtain car insurance coverage elsewhere in the preferred or voluntary auto insurance marketplace. To combat soaring insurance prices experts recommend educating yourself and then obtain Car Insurance quotes from at least three sources.
Get New York High Risk Car Insurance quote comparisons
New York Auto insurance high risk selection is the process
by which vehicle insurers determine whether or not to insure an individual
and what insurance premium to charge. Depending on the jurisdiction, the
insurance premium can be either mandated by the government or determined
by the insurance company in accordance to a framework of regulations set
by the government. Often, the insurer will have more freedom to set the
price on physical damage coverages than on mandatory liability coverages.
Where you live or, more precisely, where you keep your car parked at
night has a bearing on your chances of having an accident or becoming a
victim of theft or vandalism. That's why a vehicle owner in Manhattan, New
York, pays a higher rate than the owner of an identical vehicle in Black
Mountain, North Carolina.
Other factors affecting regional insurance rates include time and efficiency of police response and law enforcement, local road and traffic conditions and the quality of local medical services. Insurers even factor in the litigation rates in a given area--that is, how many lawsuits are filed, go to trial, are settled out of court and for how much.
Why are rates different for different cars, even if the cars cost the same?
Vehicles are also grouped into categories according to their chances of being damaged, vandalized or stolen. Insurers generally consider the size and type of vehicle, as well as the value and the cost of repairs which vary greatly, even on vehicles that cost about the same amount. Therefore, it is assumed that a new sport utility vehicle is expected to hold up better in an accident than a sports car or a subcompact or electric hybrid car.
Putting auto insurance aside for a moment, safety is key when buying an auto. Your life and everyone who rides with you depends on it! Some cars are considered safer than others because of their performance record in safety tests and real accidents.
That is why all consumers should research insurance coverage before you buy your car. It helps you to understand the actual cost and indicates those vehicles with good safety records. Your insurer will ultimately reward you for putting safety first.
Why would my auto insurer cancel my policy?
Technically, in most states your insurer may cancel your policy only if:
you fail to pay your premium;
you lose your driver's license;
you are guilty of material misrepresentation during the application process i.e., you fail to notify your insurer of a recorded violation, such as a drunken driving, or possession of drugs or any illegal activity offense; or
you fail to report a substantial change of risk, such as buying a new high performance sports car to replace an old high mileage family sedan.
However, your insurer can choose not to renew your policy for a variety of reasons.
Do you have a bad driving record? Have you received a lot of speeding tickets? Have you ever been caught driving drunk? Not only are these scenarios considered unsafe and illegal, they are justifiable cause for your insurer to label you a bad risk and refuse to renew your policy. Some underwriters may feel compelled to cancel policies after only one accident.
Where do you live? Has the neighborhood changed in the last few years? Have the accident or crime rates risen noticeably? As regions are reassessed periodically, their status could change and you could suddenly find yourself living in a higher risk area, where your insurer's rates may not be adequate to cover losses.
What do I do if my insurer cancels or refuses to renew my policy?
Even "good" New York drivers can find themselves in the position of being dropped by their current carrier. Reasons range from a couple of moving violations, or multiple accidents, or other serious violations that make you a high risk to situations outside your control, such as when insurers in your state are suffering severe business losses. Overall rises in claims or losses can cause insurers to become highly selective in determining whom they can afford to offer to insure.
That is why it is important to note that if you are licensed to drive, by law, you are eligible for insurance. However, your options for new coverage may be limited. Each state has created and regulates a market of last resort for those who cannot otherwise obtain coverage. These groups have various names, depending on the state you live in, such as assigned risk auto insurance plans or the residual market, or the high risk pool. Your agent or insurance producer will know more about the particulars in your state.
Regardless of the reason you were dropped or canceled by your insurer, you need to act immediately to get another policy. Under no circumstance should you drive your vehicle without knowing one hundred percent that you have current insurance. Call your local agent to help you find new coverage. If you do find yourself in the assigned risk residual market pool, the price may be higher but it may be your only alternative in maintaining your freedom to drive.
Getting yourself out of the high risk insurance or assigned risk driver pool category is going to take a little time. You may need to consider the following, cleaning up a bad driving record and paying your bills on time. And some factors will fade with time. Most insurance companies rate a driver with no points for three years as a good or preferred risk. But there are a few things you can do to cut high risk auto insurance costs now! Consider driving an older car and dropping collision and comprehensive coverages. Or, if you can accept the risk, carry lower amounts of other standard coverages.
And don't forget that shopping online is a great way to access assigned risk auto insurance PAIP certified producers and companies that serve Local Consumers in our area. You may even be able to comparison shop between several offers. If you get a FREE QUOTE from each of the national quoting services you will have the best service from someone Local in your area.
NJDirect Insurance Brokerage,LLC is licensed and writes high risk
high risk NY Auto-Truck-Bus insurance in
DE,FL,LA,MD,NC,NJ,NY,OH,PA,SC,VA. 18 Pitman Ave, Suite 101
Pitman, NJ 08071
J.N. Mason Insurance Agency is licensed and writes high risk auto insurance in
New York, Pennsylvania, Connecticut, and New Jersey, from one or all of the following addresses:
65 West Front St., Hancock, NY 13783
74 Pleasant St., Monticello, NY 12701
2481 Crotona Ave., Bronx, NY 10458
2459 East Tremont Ave., Bronx, NY 10461
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