All drivers in Kansas must carry auto insurance in order to be on the road legally. However, if your driving record contains traffic tickets or auto accidents, you may have a hard time finding coverage in the Kansas auto insurance “voluntary” market. “Voluntary” is the insurance industry term to describe the regular insurance market where insurers voluntarily rate and insure drivers. If you are refused auto insurance because you are considered “high risk”, you can turn to the Kansas Automobile Insurance Plan (KS AIP). As long as you meet the eligibility criteria described below, you should find coverage for at least the minimum requirements of 25/50/10.
What is the Kansas Automobile Insurance Plan (KS AIP)?
The Kansas Automobile Insurance Plan was created in 1950 in order to provide auto insurance for drivers that the insurance companies preferred not to cover, also referred to as high-risk drivers. Companies that want to sell auto insurance in the voluntary market must cover a portion of high-risk drivers as well. By means of the Kansas AIP, the number of insured drivers in the “Sunflower State” is maximized, while the costs that typically arise from insuring higher risk drivers are spread across many Kansas insurance companies.
Drivers in Kansas who apply through the KS AIP are assigned to an insurer, rather than choosing their own. The number of assignments is based on the market share each company has for auto insurance in Kansas overall. So for example, if State Farm has 9% of the auto insurance market in Kansas, then State Farm will cover 9% of the high risk drivers in Kansas.
Kansas AIP Eligibility
In order to apply for insurance through the Kansas AIP, you must declare on your application that you have attempted to find auto insurance in the voluntary market within the last 60 days – and been turned down. If that is the case, then you can apply for auto insurance as long as you have a valid driver’s license and a car registered (or about to be registered) in Kansas.
Note that you will NOT be able to apply for coverage through the KS AIP if you have an outstanding, unpaid premium bill with another insurance company. Also, you will not be able to apply for Physical Damage coverage through the KS AIP if your car is an antique (older than 25 years), has an actual cash value of over $100,000, or if you don’t present your car for a visual inspection by the insurance company. It’s important to fill out the application accurately and in good faith.
As soon as you pay your outstanding premium bill and bring your car in for inspection, you can proceed with your application immediately. However if the Kansas AIP decides you have omitted or misrepresented important facts on your application, they can both deny you insurance AND make you wait 12 months before you can apply to the Kansas AIP again.
Kansas AIP Coverage
Kansas high risk drivers are offered similar kinds of auto coverages as those found in the voluntary insurance market. But your policy assigned through the KS AIP may cost more than what you would pay in the voluntary market. Note that once you are assigned an insurer, you are covered for 3 years. It’s a good time to focus on improving your driving record in order to become eligible for better insurance rates in Kansas’s voluntary market.
If, after 3 years, Kansas auto insurers still consider you a high risk, then you can reapply to the Kansas AIP and be considered a new applicant. Your assigned insurer may change, but you will still have the coverage you need.
The mandatory coverages in Kansas – along with minimum and maximum amounts – are shown in the table below. In addition to Bodily Injury and Property Damage, they include Personal Injury Protection and Uninsured/Underinsured Motorist coverage. Note that for insurance received through the KS AIP, your Personal Injury Protection coverage - which is actually a suite of benefits covering everything from medical benefits to survivor’s benefits – is limited to the Basic levels of coverage. You cannot purchase more than the minimum PIP here.
|Mandatory Coverage||Kansas Required Min. Limits||Kansas AIP Maximum Limits|
|Bodily Injury (BI)||$25,000 per person/$50,000 per accident||$250,000 per person/$500,000 per accident|
|Property Damage (PD)||$10,000 per accident||$100,000 per accident|
|Uninsured/Underinsured Motorist Bodily Injury||$25,000 per person/$50,000 per accident||$250,000 per person/$500,000 per accident|
|Personal Injury Protection (PIP)||Basic PIP only||No higher limits|
Except for PIP, higher levels of coverage are available at a higher premium. Talk to your Kansas insurance agent about how much coverage you need.
Your assigned insurer may also offer you optional coverages. One of these is Excess Medical Payments, which can augment you medical coverage through PIP. Another optional coverage is Collision and Comprehensive. For this coverage, you need to bring your car to an authorized insurance representative for inspection. You may choose a deductible of $100, $250, $500 or $1000 for each accident. While a higher deductible usually results in a lower premium, you need to be ready to pay the deductible should you be in an accident.
|Optional Coverages||Kansas AIP Min. Limits||Kansas AIP Maximum Limits|
|Excess Medical Payments Coverage||$500 per person per accident||$2,000 per person per accident|
|Physical Damage (Collision and Comprehensive)||actual cash value of your car||no more than $100,000|
Kansas AIP Premiums and Payments
As a general rule, Kansas high-risk drivers will pay higher premiums for auto insurance than for standard risk drivers. But there is no magic formula for knowing how much higher. Kansas auto insurers consider many factors when developing the premium for your policy, and the possible variations are huge. So it’s useful to understand what those factors are, and which ones you can change, in order to lower your premiums over time.
The insurance you receive through the Kansas AIP can be paid for in several ways. One way is to pay a 30% deposit of the entire annual premium at the time you submit your application and the remaining balance within 30 days of receiving coverage. Then there are a variety of installment plans:
- Option A – pay 40% of the entire annual premium at the time of application, then pay 30% of the premium within 90 days, and finish up with the final 30% of the premium at 6 months after the day your coverage started.
- Option B - pay 25% of the entire annual premium at the time of application. Then pay the remaining balance in five equal monthly installments.
- Option C – pay 20% of the entire annual premium up front and the remaining 80% of the premium in 8 equal monthly installments.
Be aware that all of the “installment plan” options come with a $4 service charge added to each payment.
In the happy event that your driving does improve and you succeed in finding auto insurance in Kansas’s voluntary market, you can switch to the new insurer at any time. Provide proof of your new policy to your assigned insurer, and they will refund you any of the unused premium, without penalty.
How to Apply for the Kansas Automobile Insurance Plan
All licensed auto insurers in Kansas are aware of the Kansas AIP, and can help you apply if it’s appropriate for you.
If you’d like to know more about the Kansas Automobile Insurance Plan, call the Kansas Insurance Department or visit the Kansas Automobile Insurance website: https://www.aipso.com/PlanSites/Kansas.aspx