Drivers who rack up speeding tickets or cause multiple accidents could have trouble finding affordable auto insurance. While a driving mishap or two are likely to increase your rates, too many infractions could result in car insurance companies denying you coverage.

If you can’t find auto insurance in the “voluntary market”—meaning where you choose your own insurance company—you might be faced with joining an assigned risk pool. These pools ensure that drivers can buy the state’s minimum insurance requirements when other insurers turn them down.

But getting car insurance through the assigned risk pool is typically a last resort option. Before you go this route, make sure you understand how it works.

What Are Auto Insurance Assigned Risk Pools?

The traditional method for buying car insurance is through the voluntary market. You submit an application for a policy and the insurance company will decide to offer you coverage at a certain rate. But drivers who have a higher risk of making claims can have problems finding a company that will sell them insurance—or they may be offered insurance at a very high price.

But if you own a car you need to meet your state’s car liability insurance requirements. If you can’t get insurance through the voluntary market, you may need to apply to your state’s assigned risk pool.

Car insurance companies must participate in the state pool and they must accept drivers who are assigned to them. If you are in the assigned risk pool, you’ll get coverage no matter what’s on your driving history, even if you have a bunch of speeding tickets or DUI convictions.

There’s Always a Catch

Here’s one catch: Car insurance rates in the assigned risk pool are significantly higher than you would find in the voluntary market. And another: Your coverage options may be limited. For example, you may not be able to buy collision and comprehensive insurance in some state pools.

In New York’s assigned risk plan you’re limited to $250,000 in liability coverage for bodily injury to one person in a car accident and you can add collision and comprehensive coverage. But if you have significant assets (such as a house and savings) that exceed your liability limits, your insurance will be inadequate. You won’t have enough insurance to cover what you could lose in a lawsuit.

Ending Up in the Assigned Risk Pool

There are some key factors that can funnel you into an assigned risk pool, such as:

  • No insurance record or a poor insurance record. If you haven’t had an insurance policy before, have a history of missing payments or have a gap in your coverage history, insurers might perceive you as a high risk and deny you coverage.
  • Poor driving record. This can include a history of traffic violations, DUI/DWI convictions and at-fault car accidents.
  • No driving history. Newly licensed drivers (such as teen drivers) are inexperienced and are more likely to have risky driving habits.
  • Poor credit. Insurers correlate poor credit scores with being more likely to make a car insurance claim.
  • Your location has high theft and vandalism rates. Insurers could deny coverage if you live in an area that has a high risk of car theft and vandalism.

If your car insurance application is denied, don’t give up right away—move on to another insurance company. Insurers all have different underwriting criteria, and a driver denied by one company could be accepted by another. It’s a good idea to compare car insurance quotes from several insurance companies.

If you’re having trouble getting car insurance, try a nonstandard auto insurance company. A nonstandard auto insurance policy is through a private insurer and typically costs more than a standard policy, but is a better choice than the assigned risk pool.

If you run out of options, usually any auto insurance agent in the state can help you apply to the assigned risk pool. Over time, when you have improved your driving record—or whatever dumped you into the pool in the first place—you can try again to buy car insurance in the voluntary market.