Created in 1947, the California automobile Assigned Risk Plan (CAARP) is a special program designed to make sure all drivers in the state have access to car insurance.
If you’re a high-risk driver who can’t find a car insurance policy on your own, CAARP makes it possible to purchase the required state minimum level of liability coverage so you can drive legally. But you’ll pay a higher premium for coverage than drivers with a clean driving record.
What is the California automobile Assigned Risk Plan?
The California Automobile Assigned Risk Plan is the state's residual or non-standard car insurance marketplace — that just means it’s a special program for drivers who can’t find car insurance coverage the normal way. It makes it possible for drivers who can’t find a quote because of their driving record to get the coverage they need to drive legally.
Drivers who have multiple accidents, speeding tickets, or a DUI/DWI may not be able to find a standard car insurance company that will insure them, which means they may need to get liability insurance coverage through CAARP if they want to keep driving in California.
What is the primary function of CAARP?
CAARP is designed to make sure everyone in California has access to car insurance coverage that meets the minimum liability insurance requirements for the state.
Drivers who need coverage but can’t get a quote from a standard insurer are put into a pool and assigned to an insurance company through CAARP. Every insurance company licensed to sell car insurance in California is required to participate in CAARP and they all have to charge the same premiums for CAARP coverage.
Every car insurance company is then assigned a percentage of CAARP participants based on their market share. For example, California had 230 active car insurance companies in 2020 and Farmers had 8% of the total market share, so it would have been required to take on 8% of the drivers participating in CAARP.
What is the maximum coverage allowed through the California automobile Assigned Risk Program for bodily injury and death?
Liability coverage is the part of your car insurance that pays for injuries or damage you cause in an accident. CAARP only offers 15/30/5 liability coverage limits, which means limits of:
$15,000 in bodily injury liability coverage per person
$30,000 in bodily injury liability coverage per accident
$5,000 in property damage liability coverage
These are the state minimum liability requirements, which means a CAARP policy allows you to drive legally, but the coverage limits are likely not enough to protect you in the event of a serious accident.
How to get insurance through CAARP
Drivers must work with a certified brokerage to purchase coverage through CAARP. For more information or to purchase a CAARP policy, call (800) 622-0954, which is the number for the California automobile Assigned Risk Plan.
Is CAARP the same as California's Low Cost Auto Insurance Program (CLCA)?
Though the two programs are often mentioned together and are sold through the same office, CLCA is different from CAARP. California’s low cost auto insurance program provides affordable liability insurance for drivers who meet the income requirements and keep their driving record clean.
CAARP is almost the opposite of CLCA; where CLCA offers low cost insurance for eligible drivers with a clean record, CAARP provides coverage for drivers who are considered so high risk that car insurance companies are no longer willing to offer them coverage. CAARP comes with higher premiums to account for that risk.