What is the New York State Assigned Risk Insurance Program

June 11, 2024

The New York State Assigned Risk Insurance Program (NYSARIP) is a mechanism designed to ensure that all drivers in New York State have access to automobile insurance, even if they are considered high-risk and unable to obtain coverage through the voluntary insurance market. The program is often referred to as the New York Automobile Insurance Plan (NYAIP). Some refer to it as high risk car insurance plan.

Here’s how it works:

1. Eligibility: Drivers who have been unable to secure auto insurance from at least three different insurance companies within 60 days are eligible to apply for coverage through the NYAIP.

   1. Reasons for ineligibility can be the type of vehicle (many Kia and Hyundai are now ineligible with some carriers), driving record, length of time without prior insurance, new driver, etc.

2. Assignment of Risk: Once an application is submitted, the driver is assigned to an insurance company that participates in the plan. All insurance companies licensed to write auto insurance in New York State are required to participate in the NYAIP.

3. Coverage: The coverage provided through the NYAIP is the same as what is available in the voluntary market. This includes liability insurance, personal injury protection (PIP), uninsured/underinsured motorist coverage, and other required coverages.

4. Rates: Premiums for policies obtained through the NYAIP are typically higher than those in the voluntary market, reflecting the higher risk associated with the insured drivers. However, the rates are regulated by the New York State Department of Financial Services to ensure fairness.

5. Duration: Policies obtained through the NYAIP are usually for a one-year term. After this period, drivers can reapply to the voluntary market to see if they can obtain more affordable coverage or renew their coverage through the NYAIP if necessary. It is customary for our agency to re-shop your coverage at this time if you are in the NYAIP.

The primary goal of the NYAIP is to make sure that all drivers have the necessary insurance coverage to legally operate a vehicle, thus promoting road safety and financial responsibility.

Hudson Valley Agents considers the NYAIP a last resort but necessary tool to have when placing auto insurance for our clients, because let's face it, life happens.