Are you one of the many drivers nationwide that insurers consider high risk? What do you need to know when obtaining high risk automobile insurance? The rules from state to state often differ but most states support some type of high risk auto insurance. High risk drivers are considered a risk for a reason. They are more likely to be in an auto accident than low risk drivers. Because of this, states and insurance companies are forced to find a way to help to insure high risk drivers. If they did not, then there would be many more uninsured motorists on the roadway which does not help the auto insurance company or the state. If you are seeking high risk auto insurance, here are four different types of insurance plans that may be offered in your state.

Automobile Insurance Plans- #1 Type of High Risk Auto Insurance

Many states have some type of Automobile Insurance plan for the high risk drivers. There are a few different attributes that many of these high risk plans have.

- The high risk drivers that apply for this type of insurance must show proof that they attempted to get auto liability insurance and were denied.

- All auto insurers in the state are assigned their proportion or share of high risk drivers based on their percentage of total volume done in the state.

- The limits offered for this type of high risk auto insurance are at least equal to the minimum requirements made by that state.

- Premiums are allowed to be higher

Reinsurance Facility- #2 High Risk Auto Insurance Plan

A few states have set laws to allow the high risk auto drivers to get insurance through what is called a reinsurance facility. This is another way for the auto insurance companies in a particular state to share the cost of high risk auto insurance policies. Here are the attributes of this type of high risk plan.

- Insurance companies accept any applicant that has a valid driver's license

- Insurers assign the premiums and losses for those drivers deemed high risk to the state reinsurance facility.

- All auto insurance carriers in the entire state share in the underwriting losses that would be caused by the high risk driver

Specialty Insurance Companies- #3 High Risk Auto Insurance Option

There are several auto insurance companies out there that target high risk drivers. Because of the increased risk of accident there are a few things these types of auto policies have in common

- Premiums for this type of high risk auto insurance are extremely high as this is not a shared risk type of policy.

- The amount of auto liability coverage must meet the state required minimum limits

- A high deductible might be required for this auto insurer to accept the high risk driver

- Medical coverage is often very limited

Joint Underwriting Associations- #4 Type of High Risk Auto Insurance

Other states have decided to handle the problem of high risk auto insurance carriers with what is called Joint Underwriting Associations. This type of arrangement is set by the state as some of the other types mentioned but has some key differences.

- The Joint Underwriting Association will be the one that sets the insurance rates and approves the policy forms for this type of auto insurance.

- The state will assign a limited number of handling insurance companies to handle the policies for their high risk drivers.

- Although certain insurers handle the policies and claims for this type of high risk auto insurance, all state insurance companies split the underwriting losses created by these risky drivers

These are the four main types of ways states and insurance carriers are handling high risk auto insurance. If you are a high risk driver, check how your state handles the high risk and try to get a quote or fill out an application.