Nashville, TN – (WiredPRNews.com) Nearly all of the 50 states have financial responsibility laws that require residents to secure a car insurance policy before being able to drive legally. But, since all of these states also permit for competition among carriers — who wish to maximize the amount of beneficial risks and minimize the amount of harmful risks within their pools of policyholders — some consumers with poor driving records may find that no providers are willing to grant them coverage. Luckily for this group, state governments have set up programs to aid them.
Shoppers looking for auto insurance in Tennessee for instance can turn to the Tennessee Automobile Insurance Plan (TAIP), which is administered by the property and casualty unit of the state’s department of insurance.
Although the assigned risk plan had existed in the state for quite some time, it was not officially established as a “non-profit, unincorporated legal entity” administered by the state commissioner until Jan. 1, 2010. Now that legislators have officially inaugurated the plan, all insurers providing coverage in Tennessee are required to participate.
The assigned risk plans work like this: Some motorists have driving records or claims history that land them in the high-risk driver category. When these people go to an agent to help them secure coverage, their agents may find that no insurers are willing to take them on as risks. If this is the case, the agent may submit the application to the state entity operating the risk plan. The entity overseeing the assigned risk plan, as the plan’s name suggests, assigns these riskier drivers to insurers operating in the state. Generally, the amount of drivers that insurers are required to take on is proportional to their market share of policies in the state.
Though states provide this last means of recourse to motorists with poor records, it doesn’t mean that anyone should drive carelessly, taking comfort in the fact that this option will always be available; the cost of getting covered through these programs can be high, and the levels of protection may be limited.
To learn more about Tennessee coverage issues, readers can go to http://www.onlineautoinsurance.com/tennessee/ where visitors will also be able to search for an affordable policy by using the quote-comparison generator.
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