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IS ASSIGNED RISK BAD?
By Chuck Wells
When our state legislators made
car insurance mandatory in New York State, they had to set up a
program that would insure everyone, no matter how bad their
driving record. This program was called the New York Auto
Insurance Plan or as we know it: Assigned Risk.
Because New York is such a liberal minded state, they also told
insurance companies that they would have to subsidize Assigned
Risk with money from the good drivers so the bad drivers didn’t
have to pay the full shot. It wouldn’t be fair. This fits with
the welfare mentality in New York. They were afraid the poor
drivers wouldn’t be able to afford car insurance so instead of
penalizing them for their bad driving, state legislators
rewarded them with lower rates subsidized by those of you who
are good drivers.
So here is how it works folks. When an agent takes an
application for the Assigned Risk, that application goes to New
York City where it is assigned to the next company in line. That
insurance company has to take the person no matter how bad their
driving record and can only charge the maximum allowed by New
York even if it means they will lose money. Every car insurance
company in New York must participate in the Assigned Risk
although some pay to have other insurance companies take their
assignments.
Is Assigned Risk more expensive than having a standard policy
not in the Assigned Risk? You would think it must be but since
these Assigned Risk policies are subsidized by the good drivers,
many times the rates are actually LOWER than standard policies.
That’s right; you may have lower car insurance rates by being in
the Assigned Risk!
So is it a bad thing to be in the Assigned Risk? If you are
getting lower premiums and that is all you care about, the
Assigned Risk can be good. If you are looking for prompt
handling of a claim, the Assigned Risk is usually bad news. Keep
in mind that the insurance company is losing money on that
policy they were forced to take. Do you think they care about
you and your claim?
One final note. You don’t have to be a poor driver to be in the
Assigned Risk. New drivers, people with poor credit, people
without prior car insurance, and people with old cars may not
qualify for standard auto policies now. That means the Assigned
Risk.
NO MORE BABY DOCTORS?
Eileen Murphy, an obstetrician from Chicago, is leaving her
profession. She makes $170,000 per year. Because of lawsuits,
her malpractice insurance premiums are $138,000 per year. You do
the math.
MAN IS TICKED OFF AND DIES
A man in Mississippi died of Rocky Mountain spotted fever. He
pulled ticks off his two dogs and bit the ticks with his teeth.
Veterinarians say that this is not so unusual.
THE PASSION?
A 23 year-old guy in Hartland, Maine decided he wanted to
commit suicide by crucifixion. He built a wooden cross, placed
it on the floor, and nailed one of his hands to hit. Only one
problem. He couldn’t figure out how to nail his other hand to
the cross. He then called 911 and the responding police officer
didn’t know if the guy wanted an ambulance or someone to nail
his other hand.
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