Auto Insurance Basics

Wyoming Automobile Insurance Plan – WY AIP

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Drivers in the Equality state may have difficulty finding auto insurance coverage if they have a record of at-fault accidents, or simply are high-risk because of their young age. Wyoming auto insurers may consider you to have a higher chance of filing claims in the future, and simply refuse to insure you. If you were ever rejected by auto insurers, you can turn to the Wyoming Automobile Insurance Plan (WY AIP). As long as you meet the eligibility criteria listed below, this Plan will ensure that you receive coverage. In Wyoming, all drivers must carry liability auto insurance coverage in the amounts - at a minimum - of 25/50/20 in order to be on the road legally.

What is the Wyoming Automobile Insurance Plan (WY AIP)?

The state of Wyoming instituted the Plan back in 1948, with the goal to ensure auto insurance coverage for as many Wyoming motorists as possible. While the state encourages people to find auto insurance on their own, Wyoming insurers have the freedom to accept and deny coverage applicants, and this has left some Wyoming motorists without adequate coverage to stay on the road (generally speaking, insurers tend to charge higher premiums or simply avoid covering drivers who pose higher risk of losses – aka insurance claims.) So the state of Wyoming passed laws stating that if an auto insurance company wanted to do ANY business in the state, then they had to agree to help cover high risk drivers too.

In operation, the Wyoming AIP is an entity that assigns drivers in its assigned risk pool to Wyoming auto insurers who agree to this arrangement. When you apply for coverage through the AIP assigned risk pool, you essentially enter the state’s residual market (as opposed to the voluntary market where you are just rejected for coverage.) When you are getting car insurance through the Wyoming AIP, you do not have a choice in which insurer you are assigned to.

The Wyoming AIP assigns drivers to auto insurers based on market share. So for example, if Allstate covers 10% of all Wyoming drivers, then Allstate will be assigned 10% of all the high risk drivers in Wyoming. Your assigned insurer must cover you for 3 years – provided that you remain eligible. If at the end of 3 years you remain a high risk driver, you may reapply to the Wyoming AIP for at least another three years of coverage.

Wyoming AIP Eligibility

In order to apply for insurance coverage through the Wyoming AIP, you must meet the following requirements:

  1. Declare on the application that your own efforts to obtain auto insurance in Wyoming have failed within the last 60 days.
  2. You must have a valid driver’s license.
  3. Fill out the AIP application accurately and completely.

You may not be able to find insurance coverage - even through the Wyoming AIP – if you have an outstanding, unpaid bill with any other auto insurer in Wyoming or if your auto insurance was cancelled within the last 12 months because you did not bring your vehicle in for a requested safety inspection by your last auto insurer. Also note that if your assigned auto insurer discovers that you have omitted or misrepresented important information on your application, they can cancel your policy and the Wyoming AIP can ban you from reapplying for 12 months. 

Wyoming AIP Coverage

Your assigned insurer will offer you the same types of auto insurance coverages that other Wyoming drivers receive. The table below shows the mandatory coverages that you must purchase in order to be on the road legally in Wyoming. We recommend drivers think twice before choosing the minimum levels of coverage. If the cost of damages related to an accident is greater than the coverage level that you choose, then you are personally liable to make up the difference. There are midpoints of coverage between the minimums and maximums, so talk to your insurance agent about what coverage level is right for your specific situation.

Mandatory CoverageWyoming Required Min. LimitsWyoming AIP Maximum Limits
Bodily Injury (BI) $25,000 per person / $50,000 per accident $100,000 per person / $300,000 per accident
Property Damage (PD) $20,000 per accident $50,000 per accident

Your assigned Wyoming insurer may offer you one or more of the following optional coverages as well. These will add to the cost of your premium, but they may be well worth it. Uninsured Motorist Bodily Injury pays for YOUR injuries if you are in an accident with an uninsured driver. Physical Damage insurance is composed of two coverages: Comprehensive and Collision coverage. This comes with a choice of deductibles of $100, $200, or $250. This is the amount you must pay yourself before your insurance coverage kicks in. Generally the higher the deductible you choose, the lower the cost of this part of your insurance premium. Note that if your car is an antique (older than 25 years) or has a cash value of more than $25,000, then your assigned insurer does not have to offer any of the Physical Damage coverages.

Optional CoverageWyoming AIP Min. LimitsWyoming AIP Maximum Limits
Uninsured Motorist BI (UMBI) $25,000 per person / $50,000 per accident $25,000 per person / $50,000 per accident
Physical Damage Actual cash value of your car, up to $25,000 No higher limit
Medical Payments (MedPay) $1,000 per person / accident $5,000 per person / accident

Wyoming AIP Premiums & Payment Plans

If you receive your auto insurance from an assigned insurer through the Wyoming AIP, you will probably pay more for your auto insurance than average. This is why the Wyoming Department of Insurance always ask Wyoming motorists to consider the AIP as a last resort. The guaranteed three years of coverage should be the time for you to focus on improving your driving record, and simply work on becoming a better risk in the eyes of Wyoming insurers. If your record improves, you may go back to the voluntary market, where lower auto insurance rates in Wyoming are easier to find. Auto insurers consider many factors in developing the price for your auto insurance premium. The more you know about these factors, the more readily you can take actions that will lower your auto insurance premiums over time.

There are two main ways to pay for your Wyoming auto insurance policy:

  1. One is to put 40% of the entire annual premium down with your insurance application, and then pay the balance within 30 days of receiving the policy in the mail.
  2. The other is an installment plan. You must still put 40% of the first year’s premium down, but the remainder will be paid in 5 equal monthly installments. If you choose the installment plan, you will also pay a $4 service fee with each monthly bill.

Be sure to pay your insurance premium on time! If you haven’t paid your bill by the due date, your assigned insurer will send you a cancellation notice instead. There is no grace period with auto insurance bills, and it can quickly become a hassle to pay up and get your auto insurance reinstated.

How to Apply for Insurance through the Wyoming AIP

All licensed Wyoming auto insurance agents or brokers can explain the Plan, and help you get an auto insurance quote.

For more information about the Wyoming Automobile Insurance Plan, call the Wyoming Department of Insurance at (307) 777-7401, or check out the Wyoming AIP website.

Sources:
Wyoming Department of Insurance: Auto FAQ
Wyoming Automobile Insurance Plan site
WY AIP PPA Alternate Application form

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