California Assigned Risk
The California Automobile Assigned Risk Plan (CAARP) has existed since 1947. When drivers have exhausted the possibility of obtaining automobile insurance through regular insurance channels, CAARP gives them one more opportunity.
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AIPSO
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The national non-profit organization AIPSO manages California's assigned risk plan on behalf of the Department of Insurance. All insurance companies operating in California must accept a share of assigned risk policies. Auto insurance brokers apply to become certified producers who assign which company will insure the driver. The driver does not pay the broker's commission.
Who is Eligible
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The CAARP program covers only a properly licensed driver whose car is registered in California. She cannot have any unpaid premiums outstanding to an automobile insurance company for the previous two years. Applicants must file a declaration that they received denials to all their previous applications for insurance.
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Policy Costs
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Insurance brokers ask for a deposit equal to 25 percent of the annual premium. The minimum deposit is $250 for a passenger car or $500 for commercial vehicles. Some minimums may be higher for higher-risk commercial vehicles. An advisory committee sets the premiums and the underwriting costs are shared by California insurance companies.
Coverage Limits
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CAARP provides liability insurance only at the California minimum required insurance rates, $15,000 for injury or death to one person and $30,000 for multiple persons, plus $5,000 liability for property damage as of September, 2010.
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References
Resources
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