Insurance Plan Work?" width="500" height="395" />The Rhode Island Auto Insurance Plan (RI AIP) is an insurance system for drivers unable to obtain car insurance through the marketplace.
Drivers in Rhode Island must carry minimum auto insurance coverage to legally drive on public roads. However, certain high-risk drivers may struggle to obtain car insurance from the marketplace. If you have multiple DUIs or at-fault accidents, for example, then you may be unable to buy car insurance through GEICO, State Farm, and other ordinary providers serving Rhode Island.
If insurers refuse to cover you in Rhode Island, then your best option may be the Rhode Island Automobile Insurance Plan.
Insurance Plan Work?" width="500" height="395" />
Launched in 1968, the Rhode Island Automobile Insurance Plan covers high-risk drivers across Rhode Island who are unable to obtain car insurance through the marketplace.
Many states have assigned risk pools for auto insurance, and the RI AIP is Rhode Island’s assigned risk pool. Insurers sign up for the assigned risk pool, and the RI AIP assigns drivers to insurers through this pool.
Normally, insurers licensed in Rhode Island can choose who they insure. If you request a quote from Progressive, for example, then Progressive can decide whether or not to insure you. With the Rhode Island Automobile Insurance Plan, however, high-risk drivers can obtain car insurance and continue to legally drive – even if they are unable to obtain car insurance through the voluntary market.
According to the AIPSO, which administers the Rhode Island Automobile Insurance Plan system, approximately 20% of drivers in Rhode Island get car insurance through the Rhode Island Automobile Insurance Plan.
Drivers who are unable to obtain car insurance through the ordinary marketplace are eligible to buy car insurance through the Rhode Island Automobile Insurance Plan.
To qualify, you must prove you tried to buy car insurance through the voluntary marketplace – and were denied – within the last 60 days.
If you have requested quotes from multiple insurers in Rhode Island, for example, but have been repeatedly denied, then you should qualify for the Rhode Island Automobile Insurance Plan.
Drivers also need to have a vehicle registered in Rhode Island and a valid driver’s license to qualify for the program.
The full list of RI AIP requirements includes:
As long as you meet those requirements, then you should qualify for the Rhode Island Automobile Insurance Plan.
The Rhode Island Automobile Insurance Plan is designed for drivers who are unable to get car insurance through other providers.
However, the Rhode Island AIP could deny or hold up your claim based on several factors, including:
The Rhode Island Automobile Insurance Plan will check your driving record, insurance history, and other information before assigning car insurance. If the organization discovers that you have lied or omitted information, then they could hold up your application until you provide truthful information.
If the Rhode Island Automobile Insurance Plan finds you submitted an application in bad faith (like deliberately lying about your driving history to avoid higher insurance premiums), then the RI AIP could refuse to insure you, forcing you to wait 12 months before re-applying.
If you qualify, then your RI AIP insurance works similar to ordinary car insurance. You pay monthly, semi-annual, or annual insurance premiums in exchange for coverage.
When you get car insurance through the Rhode Island Automobile Insurance Plan, the plan assigns an insurance company to you.
You may be assigned a company like GEICO or State Farm, for example. You pay premiums to this company. Because you’re a high-risk driver, your premiums may be higher. However, once the RI AIP accepts your application, your assigned insurer must insure you – even if you have been previously denied by GEICO or other insurers.
Your Rhode Island Automobile Insurance Plan policy must meet Rhode Island’s minimum insurance liability limits. The RI AIP also sets certain maximum limits that you cannot exceed.
Minimum RI AIP Insurance Requirements: $25,000 of bodily injury liability coverage per accident, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage per accident.
Maximum RI AIP Insurance Limits: $250,000 of bodily injury liability coverage per person, $500,000 of bodily injury liability coverage per accident, and $100,000 of property damage liability coverage per accident.
By law, your insurer must offer you additional coverage options, including medical payments coverage and uninsured motorist coverage. However, drivers on the Rhode Island Automobile Insurance Plan can refuse these options in writing.
Insurers must also offer you comprehensive coverage and collision coverage, which protect your own vehicle after an accident. Insurers offer you a choice of deductibles for these coverages, including $100, $200, $500, or $1,000 options. If you want to protect your own vehicle, then you can buy these coverage options. However, these coverages will also raise rates significantly. As a high-risk driver, you may want a minimum liability plan to save money.
Because you’re a high-risk driver, you’ll pay more for car insurance through the Rhode Island Automobile Insurance Plan than other drivers. You may pay double or even triple the average rates of other drivers in Rhode Island.
Insurers consider your driving record, credit score, and other factors when calculating premiums. That’s why rates available through the RI AIP vary widely. Depending on your unique factors, you could pay significantly higher or lower rates for car insurance through the RI AIP.
If you have been denied by ordinary car insurance companies in the last 60 days, then you could obtain car insurance through the Rhode Island Automobile Insurance Plan.
Contact any licensed insurance company in Rhode Island to receive a quote. All licensed insurers in Rhode Island are familiar with the RI AIP. They can explain further information about how to apply, how much you can expect to pay, and more.
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
