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CAARP Introduction, Part II: Private Passenger
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What is the California Automobile Assigned Risk Plan (CAARP)?

The California Automobile Assigned Risk Plan (CAARP) is auto liability insurance for:

  • Any person who cannot get insurance through the standard market because they are not a good driver as defined by the Insurance Code.
  • Any person who has a valid driver's license in California or any other state or country as long as they get a California license within 30 days of assignment.
  • Any person who is eligible to obtain their license with proof of financial responsibility.

Applicants Not Eligible for Plan

  • If an applicant does not hold, or is not eligible to obtain an operator's license, they would not be eligible.

  • If the operating license of either the applicant or any other person who drives the vehicle is suspended or revoked during the policy period, the policy shall remain in force as long as the following requirements are met:
  • Another duly licensed operator is provided or added on the policy, or
  • A named driver exclusion endorsement is completed excluding the named driver with the suspended license and the completed endorsement is received by the insurer prior to the cancellation date.

  • If the applicant owes money to any insurer on a policy issued under assignment by CAARP during the immediately preceding 24 months they would not be eligible for CAARP until that premium is paid back in full.

Eligible Risks for CAARP Private Passenger

Private Passenger Non-Fleet Autos:

A private passenger auto is an auto type of the private passenger, station wagon or jeep type (with four wheels), owned or leased for a period of at least six months by an individual, husband and wife or domestic partners under California law. The vehicle cannot be used as a public auto or rented to others.

Other Eligible vehicles:
  • Motor Homes - a self-propelled auto with a living area that must consist of facilities for cooking and sleeping.
  • Motorcycles- all motorcycles, mopeds, motor scooters, and other similar motorized two wheeled autos used for private passenger purposes.

Miscellaneous type vehicles registered for highway use as follows:

  • Antique autos
  • Campers
  • Snowmobiles
  • Dune Buggies
  • Golf Carts
  • All terrain vehicles
  • Trucks and Vans with a load capacity of 1500 pounds or less not used in business or registered to a company or corporation.

Named Non-Owner Applicants are also eligible risks for CAARP Private Passenger.

Risks Not Eligible for CAARP Private Passenger

  • Pickups and Vans with a load capacity in excess of 1500 lbs (1-ton vehicles)
  • Pickups and Vans used in Business
  • 5 or more vehicles (considered a fleet) under one ownership, no matter how the vehicles are being used

These vehicles would be rated as a Commercial risks.

Coverages and Limits

Bodily Injury, Property Damage, Medical Payments, and Uninsured Motorist Coverage

The Assigned company shall be required to write a policy for bodily injury coverage in the amounts of $15,000 per person, and $30,000 per occurrence and property damage liability coverage in the amount of $5,000, (the minimum financial responsibility limits in California of 15/30/5).

Optional Coverages

Medical payments coverage in the amount of $1,000 per accident shall be available to an applicant upon request. It can be written only in conjunction with the same policy issued in accordance with CAARP affording bodily injury and property damage and written only on a basis in excess of all other valid and collectable insurance covering the same loss.

Uninsured Motorist Coverage is available at the minimum limits for bodily injury coverage in the amounts of $15,000 per person, and $30,000 per occurrence and property damage liability coverage in the amount of $3,500. There can be no uninsured property damage without uninsured bodily injury.
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© 2008, LunchTimeCE, Inc and AIPSO. All Rights Reserved.
Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
The authors, LunchTimeCE, Inc. and AIPSO, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.