Pennsylvania Assigned Risk Plan (PA ARP)
Find Cheap Auto Insurance Quotes in Pennsylvania
Pennsylvania drivers who aren't able to get coverage through a mainstream car insurer may instead get a policy through the Pennsylvania Assigned Risk Plan (PA ARP). While these policies are expensive, they are a good option for maintaining coverage while improving your driving record.
You'll also avoid penalties for driving without insurance, such as having your vehicle registration and driver’s license suspended, paying fines and owing fees to reinstate your registration and license.
A policy obtained through the PA ARP will almost always cost more than an identical policy you’d find directly with any given insurance company. As soon as you've built a better driving record, you can go back to the regular market to try for better auto insurance rates in Pennsylvania.
What is the Pennsylvania Assigned Risk Plan (PA ARP)?
The Pennsylvania Assigned Risk Plan allocates an auto insurance carrier to high-risk drivers who have been unable to find an insurer in the voluntary market willing to cover them. The PA ARP is a last resort and facilitates insurance for high-risk drivers.
When motorists enroll in the PA ARP, they are placed in a residual pool and then randomly distributed to insurance companies based on a quota system. Every insurer authorized to write auto insurance in Pennsylvania must participate in the PA ARP and provide coverage to a certain number of motorists in the residual pool based on market share.
For example, if Geico has 15% of the Pennsylvania auto insurance market, that means 15% of the high-risk drivers in the residual pool will be assigned to Geico.
PA ARP eligibility
To be eligible for insurance through the PA ARP, you must certify that you have tried and failed to find auto insurance in the voluntary market in Pennsylvania or that you have been unable to find auto insurance with rates lower than those offered under the PA ARP, within the past 60 days.
You could be ineligible for insurance through the PA ARP if:
- You failed to pay any auto insurance premiums to your previous insurance company during the preceding 12 months
- Your insurance policy (with someone other than PA ARP) was canceled within the past 12 months for failure to make your vehicle(s) available for a safety inspection
- Any person who usually drives the motor vehicle does not have a valid driver’s license
- You own an antique automobile (25 years or older)
Your assigned insurer must continue to insure you for at least three years. If you are able to find an insurer in the voluntary market that will offer you coverage, you can cancel your PA ARP policy at any time for no charge.
At the end of the three years, if you are still unable to find coverage in the voluntary market, you can reenter the PA ARP residual pool and be assigned to another insurer.
Another possibility at the end of the three years is that your insurer could rewrite your policy in the voluntary market. For example, if State Farm is your assigned insurer through the PA ARP for those three years, and you have been evaluated to be a safer driver, State Farm could offer to insure you outside of the PA ARP program.
Because high-risk drivers are more likely to incur losses and expenses, rates written for those who enter the residual pool in the PA ARP tend to be significantly higher than the same policies in the voluntary market. If you have exhausted your options in the voluntary market, it will be best for you to enroll in the PA ARP, even if it's expensive, for a short time while you work to become a safer driver. As soon as you've built a better driving record, go back to the regular market to try for better auto insurance rates in Pennsylvania.
If you allow your coverage to lapse, you risk penalties, including having your vehicle registration and driver’s license suspended for three months, plus fines and fees to reinstate your registration and license.
PA ARP coverage
Your assigned insurer must provide you with the minimum liability, no-fault and uninsured coverages required by Pennsylvania law. Additionally, your assigned insurer must offer you the option of purchasing higher amounts of coverage than the minimum.
Pennsylvania minimums | |
|---|---|
| $15,000 per person / $30,000 per accident | |
| $5,000 per accident | |
| $5,000 per accident |
You may obtain higher levels of coverage — up to $100,000/300,000 for bodily injury and $50,000 for property damage — at a higher premium cost.
Pennsylvania law also offers drivers the opportunity to purchase uninsured motorists insurance. You may reject this, in writing, if you choose. Comprehensive and collision coverage are not required in Pennsylvania, but you do have the option of purchasing them through the PA ARP. You can get up to $35,000 in coverage against physical damage and choose from several deductible options. Additional medical payment coverage is also available for purchase.
PA ARP premiums and payments
Premiums will vary by driver, depending on where you live, your age, your driving record, the type of car you drive, your level of coverage, and countless other factors. Pennsylvania has a "financial responsibility" law that allows your insurance carrier to cancel your insurance if you don’t pay your premiums on time.
Generally, there are two payment options for PA ARP coverage:
- Pay in full: You can put 30% down of the total estimated premium and pay the rest within 30 days of receiving the premium notice if you choose to pay annually.
- Pay in installments: You’ll still pay 30% of the premium up front, but you’ll pay the rest in five installments over five months. There is a service charge for choosing the installment plan.
Again, if you allow your coverage to lapse, you risk having your vehicle registration and driver’s license suspended for three months, plus you’ll pay a fine and fees to reinstate your registration and license.
If you are insured through the PA ARP, you may be canceled or not renewed if you:
- Commit fraud or make "material misrepresentations" in your application
- Don’t pay your insurance premiums
- Demonstrate a substantial increase in the risk to insure you, such as driving drunk or having an accident
If your policy through the PA ARP is canceled or not renewed, you can reapply for insurance through the PA ARP immediately, as soon as the problem — like paying an overdue premium — is resolved.
How to get insurance through the PA ARP
To get a quote for the PA ARP, contact the plan’s customer service office at (401) 946-2800.