AIPSO Auto Insurance ReviewSunday, 15 December 2013 18:45
AIPSO is a national service provider that functions as a non-profit organization intended to make auto insurance available to the “residual market” or the auto insurance market that cannot find coverage voluntarily due to risk factors that make them ineligible. This market represents less than 1% of the total market but is still a significant customer base with unique needs. AIPSO ensures that the companies offering auto insurance to this market are providing adequate services and meeting the unique needs of this particular consumer group.
Company Background Information
AIPSO is not an auto insurance provider but functions as a service provider and management organization for a number of different insurance industry organizations involved in the residual market. The residual market is the group of consumers who are not able to voluntarily purchase auto insurance due to several different factors such as a poor driving history or due to the fact that they are driving for the first time. The residual market represents less than 1% of all the premiums written, and insurance applications in the residual market are divided equally between insurance companies that participate in insuring this market.
AIPSO currently has over 300 employees and is a national organization, and it receives operating revenues from the automobile insurance companies that it manages. AIPSO is a not for profit organization so any revenue that it receives only goes toward its operating costs. The organization provides its management and other services for 49 states and the District of Columbia, and tailors its services to meet the needs of the local state residual market. The organization has seven regional offices. Even though the organization exists to help auto insurance consumers from the residual market obtain insurance, there are still eligibility requirements that must be met before these customers can receive insurance. AIPSO has offices in Birmingham, AL, Glen Allen, VA, Johnston, RI, San Francisco, CA, New York, NY, and Mt. Laurel, NJ.
Pros of AIPSO Auto Insurance
- Helps customers who otherwise would not qualify for auto insurance
Cons of AIPSO Auto Insurance
- Insurance rates for the residual market are usually higher than standard insurance
Discounts for AIPSO or residual auto insurance will vary from one insurance provider to another. Customers who meet residual market insurance qualifications can contact one of the insurance providers that AIPSO manages to see which particular discounts that they might be eligible for, if any.
Types of Insurance Offered
AIPSO does not offer auto insurance directly but offers its several management services to help support the residual auto insurance market. The services include the following: plan management services, rating services, legal counsel services, policy forms services, quota sharing, application processing, members participation, uniform operation, financial, regulatory affairs, service carrier auditing, fraud containment, management consulting, commercial auto safety services, and many other services.
The AIPSO website is quite modern and has a large amount of information about the various services that the company provides and information on what the company does to support the residual auto insurance market.
There are no customer reviews of AIPSO auto insurance; reviews of AIPSO managed auto insurance companies vary significantly from one company to another.
AIPSO managed auto insurance companies are recommended for customers who meet the qualification standards that would classify them as “residual market” auto insurance customers. There could be any number of factors that would make a particular auto insurance customer eligible for the residual market insurance products that AIPSO helps provide, but typically these customers will have difficulties receiving coverage from standard auto insurance plans and high risk auto insurance providers. If you are shopping for auto insurance now you can see whether or not you may qualify for standard insurance by entering your zip code into the field on this page.