Once a person is convicted of
driving under the influence (DUI) of alcohol or drugs in California, their auto insurance premiums
are going to take a hit. One reason is because a DUI conviction disqualifies
a person from receiving the “Good Driver Discount.” Another
reason – DUI convictions are reported on people’s driving
After a DUI, some people have trouble getting insured and may need to look
into the Assigned Risk Plan. “What is the Assigned Risk Plan and
how can it help me?” It is not an insurance plan. Instead, it is
a processing center that helps people who are having trouble buying auto
insurance because of their poor driving records.
What the Plan does is it connects people with insurance companies that
are willing to provide them with insurance coverage. So, if you cannot
find coverage, the Assigned Risk Plan would put you in touch with an insurance
company that could insure you. From that point forward, you would communicate
directly with the insurance company.
“As part of the initial processing, the Plan makes financial responsibility
filings with the Department of Motor Vehicles if requested on the application,”
AIPSO. If you have difficulty getting ahold of the insurance company for any
reason, the Plan will step in and help you get the company’s attention.
If the insurance company has issues contacting you, the Plan will help
them as well.
Is the ARP an Insurance Company?
Not, it is not. However, CAARP’s Advisory Committee does recommend
its rates, which are approved by the Department of Insurance. The Advisory
Committee proposes the rates for the Plan it runs it so it can sustain itself.
“The financial backing necessary to assume the risk comes from companies
who are required by law to participate in the plan,” according to
AIPSO. When people apply to the Plan, they are divided among the various
insurance companies that participate in the Plan. For example, suppose
a company insured 10% of the cars in the State of California. In that
case, the company would insure 10% of the applicants who took part in the Plan.
DUI defense in Orange County,
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