What is the Vermont Auto Insurance Plan (VTAIP)?
The Vermont Auto Insurance Plan (VTAIP) is a program designed to help high-risk drivers find automobile coverage. Typically, motorists are encouraged to shop around and compare quotes to find an affordable policy with an adequate amount of protection, but sometimes individuals who are considered to be non-standard drivers may have difficulty locating an insurer. In situations where motorists cannot find an insurer through the voluntary market, this "assigned risk" plan can be used in order to meet Vermont’s financial responsibility requirements. Policies obtained through the plan are generally more expensive, but over time, motorists may be able to leave the VTAIP to search for their own, potentially cheaper policy.
In order for a motorist to qualify for the VTAIP, the applicant must prove that he or she has tried, but has been unsuccessful in locating an insurer that is willing to voluntarily insure him or her within the last 60 days.
Reasons the Plan may be Needed
The majority of insurers determine how much a resident pays for Vermont auto insurance based on applicant's risk factor, which essentially translates into the likelihood that the driver in question will file a claim. These conclusions are often made after analyzing various statistical findings and comparing them with the motorist’s information. For example, men are statistically more likely to be involved in accidents than women, and teenagers more so than other age groups. As a result, a 16 year old male would likely receive a higher premium than a 45 year old woman. Additionally, an individual’s driving record is also strongly considered.
Residents with multiple accidents in a three year period or a history of traffic citations are likely to be considered high-risk drivers. Often, insurers may charge these non-standard motorists more for coverage in order to counter the risk that they may be involved in another accident or file another claim. Sometimes, however, motorists with elevated risks to insure may be denied coverage entirely and may be unable to find a policy despite making multiple Vermont car insurance comparisons and shopping extensively. Because coverage is required to drive in the Green Mountain State, the General Assembly established the VTAIP in 1969 to give non-standard drivers an alternative to operating an automobile while uninsured.
Getting Out of the High Risk Pool
Vehicle owners in VT may be able to discontinue the assistance of the assigned risk plan and seek out potentially cheaper coverage by maintaining a clean driving record. Typically, accidents and citations remain on a person’s driving record for three years, and striving to become an exceptional driver is an excellent way to leave the high-risk pool and find cheaper rates. Residents may want to periodically gather car insurance quotes online to see if they have become eligible for a less expensive policy.
Keeping a clean driving record for over three years may result in a good driver discount, which often provides a substantial reduction in premiums. Motorists in Vermont should know that even though there are options for non-standard drivers, searching for coverage independently and utilizing the resources available online is likely to result in more affordable coverage.