What is the purpose of the assigned risk plan in auto insurance?

The assigned risk plan in auto insurance is designed specifically to provide coverage to high-risk drivers who are unable to obtain insurance through the standard market. This program ensures that individuals who may have poor driving records, multiple claims, or other factors that categorize them as high risk can still receive the necessary insurance protection.

The essence of the assigned risk plan is to balance the insurance market by allowing these drivers access to coverage, thereby reducing the number of uninsured motorists on the road. It operates on the principle that every driver should have a financial responsibility to carry insurance, even if their risk level is higher than average.

While other options may pertain to aspects of insurance, they do not align with the primary goal of the assigned risk plan, which is fundamentally about enabling access to coverage for those deemed too risky by standard insurers.