# Assigned risk plan

> What an assigned risk plan is, who it is for, how it places drivers with an insurer and why the coverage usually costs more than a regular policy.

Canonical page: https://statecover-guide.com/glossary/assigned-risk-plan/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

An assigned risk plan is a state program for drivers who cannot buy car insurance in the regular (voluntary) market, usually because of a poor driving record. The plan assigns the driver to an insurance company that must provide coverage. It is often called the auto plan or the residual market.

## How it works

You normally go to the plan after insurers in the regular market have turned you down. The plan then assigns your application to a participating insurer. Two examples:

- **California:** the California Automobile Assigned Risk Plan (CAARP) assigns you to a company. All insurers licensed to sell auto insurance in the state must accept CAARP assignments, and they all charge the same CAARP premiums.
- **New York:** the New York Automobile Insurance Plan, known as the Assigned Risk Plan, provides coverage as a last resort for people declined in the voluntary market.

Premiums are generally higher than in the regular market. As tickets and accidents age off your record, you may be able to move back to a regular policy, so it pays to shop again at each renewal. Your state insurance department can tell you how to apply.

## Related terms

- [High-risk driver](https://statecover-guide.com/glossary/high-risk-driver/)
- [SR-22](https://statecover-guide.com/glossary/sr-22/)
- [Financial responsibility law](https://statecover-guide.com/glossary/financial-responsibility-law/)
- Guide: [Car insurance after a DUI](https://statecover-guide.com/drivers/after-a-dui/)

## Sources

- [California Department of Insurance, Automobile Insurance Text Version](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/auto101.cfm) — how CAARP assigns drivers and sets premiums
- [New York Department of Financial Services, Auto Insurance](https://www.dfs.ny.gov/consumers/auto_insurance) — New York Automobile Insurance Plan for drivers declined in the voluntary market