Frequently Asked Questions

What is Assigned Risk?
Drivers who cannot obtain insurance through conventional means, but must be insured because of state law, are put into an Assigned Risk plan and are randomly assigned to various insurance carriers writing business in the state. Insurance companies writing business typically must also write a portion of the Plan business, based on their voluntary personal automobile insurance market share.

What is LAD (Assigned Risk)?
LAD stands for Limited Assignment Distribution. It is the mechanism by which automobile insurance companies can pay a servicing carrier to accept and manage their entire personal auto assigned risk obligation. Generally, automobile insurance companies don't have the AIP (Automobile Insurance Plan) specialization required to manage AIP business effectively. They are unfamiliar with the claims, service and pricing complexities of dealing with Assigned Risk and would rather focus their resources on managing their core business initiatives.

Where is AutoOne licensed to accept Assigned Risk assignments?

AutoOne is licensed to write Assigned Risk assignments on behalf of insurance companies in Arizona, California, Colorado, Connecticut, Delaware, Idaho, Maine, Montana, Nevada, New Mexico, New Jersey, New York, Oregon, Pennsylvania, South Carolina, Texas, Utah, Vermont, Washington, West Virginia, Washington D.C. and Wyoming. For commercial automobile risk (CLAD) assignments, they are licensed in the states of New York, Pennsylvania, South Carolina and Texas. AutoOne also writes Low Cost Auto policies in California and Public Automobile Pool Assignments (PAP CLAD) in New York.

AutoOne’s New York LAD and CLAD products are written through AutoOne Insurance Company. New Jersey LAD products are written through AutoOne Insurance Company . All other AutoOne Assigned Risk programs are written through AutoOne Insurance Company

Does AutoOne only do LAD/CLAD?
No. AutoOne also offers Take-out products for drivers who were formerly in the New York Assigned Risk Plan as well as voluntary insurance products such as our Private Passenger Auto for New York State drivers through select brokers and agents.

What is a Take-out Policy?
An Assigned Risk policy holder may be offered a voluntary insurance policy (taken out) by an insurance company before their three-year assignment period ends. Each New York Take-Out policy generates credits for the company that ‘takes out’ an AIP policy holder against future NYAIP assignments. This helps to offset the losses incurred by writing these policies. AutoOne offers Take-Out products to certain New York Assigned Risk policyholders either directly or through select AutoOne brokers.

What is AutoOne's Private Passenger Auto Product?
NY Private Passenger Auto Casualty Program is written through Maidstone Insurance Company. NY Private Passenger Auto Select Program is written through Maidstone Insurance Company. All other Auto programs are written through AutoOne Insurance Company.