Assigned risk

Assigned risk is like a giant game of tag. Let's pretend you and your friends are playing tag at the park. You're all running around, having a great time, but then one of your friends gets tired and decides they don't want to play anymore. Instead of running around and having fun, they just want to rest and watch everyone else play.

In assigned risk, it's like you and your friends are all drivers, and the road is the park. Everyone is driving around, but some people are better at it than others. Just like how some of your friends might be faster runners than others.

But sometimes, the people who aren't very good at driving aren't allowed to play the game anymore. This can happen if they get in too many accidents or break too many rules. This is like your tired friend who doesn't want to play anymore.

When this happens, they can't just stop driving altogether. They still need to be able to get to work and to the store and all the other places they need to go. But they need help because they're not very good at driving.

This is where assigned risk comes in. It's like a grown-up saying, "Don't worry, we'll help you play the game. We'll give you a special prize that makes it easier for you to play."

In assigned risk, the special prize is car insurance. The grown-up (or the government) makes a special rule that says even if you aren't very good at driving, you still get to play the game. But to make sure everyone is safe, you have to have insurance.

This insurance is special because it's a little bit more expensive than regular insurance. But everyone is still allowed to get it, even the people who aren't very good at driving.

So, assigned risk is like a way to make sure everyone can still play the game, even if they're not very good at it. It's like a special prize that helps everyone get along and stay safe. And that's why it's important to always have car insurance!