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Metairie Auto InsuranceDrivers who have always had relatively standard car insurance may not have heard about state risk pools for auto insurance – the use of the term ‘state pools’ or ‘high-risk pools’ can be confusing to some drivers who don’t really understand what’s behind modern insurance underwriting and policy provisions. 

In insurance-speak, a pool represents a larger group of potential insured members. Setting up pools allows companies to cover various individuals, in this case drivers, in different ways.

State risk pools are often referred to as SR-22 insurance. This type of insurance will cover high-risk drivers such as those with a DUI or DWI on their record. The way it works is this: state officials create guidelines for risk pools and get agreements from insurance companies. These agreements involve covering higher risk drivers, who would naturally be charged extremely high rates, policies that they can afford in order to help them stay on the road legally. The SR-22 is actually a form that shows law enforcement that the high-risk driver has obtained legal insurance. Rules vary from state to state: although drivers must get accurate details directly from officials in their state of residence.

The Idea Behind State Pools

State auto insurance pools were largely set up because state officials all across the country recognized that their states were having problems with high numbers of uninsured drivers. Uninsured motorists cost communities a lot of money over time, since their lack of insurance at the time of an auto accident pushes costs onto other parties. States have been under pressure to bring down the numbers of uninsured drivers, while also offering insured drivers ‘uninsured motorist coverage’ to help with some of the costs. State pools help to make sure that fewer drivers are getting on the road without legal auto insurance, which is a big benefit to communities where drivers worry about getting into an accident with someone who isn't covered. Drivers can get more information on trends in the number of uninsured drivers, and what they mean for the nation as a whole, at official safety groups which distribute this kind of data to the public in order to educate on how to reduce risks and promote safe driving.

Getting “SR-22” or High-Risk Insurance

Steps for getting high-risk insurance vary in different states. Drivers can call the state Department of Motor Vehicles in their state of residence to get more information about how to order one of these policies, and how to get a corresponding SR-22 form that will show law enforcement and others that the driver is legally insured.

State risk pools are often extremely effective ways for high-risk drivers to get around the sky-high rates that they would have to pay on the general market. Anyone who faces the challenge of getting auto insurance with a high-risk driving record can look into these types of options in their state.

For more questions about getting Metairie Auto Insurance, call a Lake Insurance & Financial agent today at 866-674-2537.
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Southshore: 3131 North Interstate 10 Service Rd East
Metairie, LA 70002
Ph: 504-831-6974 | Fax: 504-831-4176

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Mandeville, LA 70471
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