Individuals or families that incur multiple vehicle infractions receive higher auto insurance rates. If a driver's history includes major offenses, such as a DUI, a company sometimes chooses not to accept the risk. These rejected drivers need to go through a different process to purchase auto insurance. Uninsured drivers caught and charged by the court also need insurance through a different process, because the Court requires proof that the driver purchased insurance - from the insurance company.

If a person or couple represent too high of a risk for the auto insurance company, the company places the driver in the state's assigned-risk pool. When an individual becomes an assigned-risk there is a protocol in place that assigns the driver to a company. The insured, or owner of the policy, cannot choose the company that insures them. There is a rotation assigned by the state. The company in line to take the next policy is the one that will handle administration and billing of the policy. The company that administrates the assigned-risk policy receives much less information on the driver than they would a regular customer. A squeaky-clean driving record is the only hope an assigned-risk driver has to return to the normal pool of applicants.

A driver caught without insurance or certain other offenses needs an SR-22 form to continue driving. The insurance company submits the SR-22 (or Proof of Financial Responsibility Form) to the driver's state. The form communicates the proof from the auto insurance company that the driver purchased liability insurance. A driver required to fill out an SR-22 by their state should expect classification as a high-risk driver and a dramatic premium increase. Not all states require SR-22s.