Car insurance rates are always the topic of discussion amongst drivers. Some people now feel that poor people pay more for their auto insurance coverage then middle and upper class drivers do.
The group that is alleging this is called The Consumer Federation of America. They believe that state regulators do not assess each person’s insurance policies fairly and that there are regulations that need to be changed.
When a car insurance company looks at a person’s information, they want to assess the risk that the driver poses to insure. For example, if a person lives in a neighborhood with a lower crime rate than they pose less of a risk to insure than a person who lives in an area with more crime.
Many lower income drivers feel that these practices are causing them to be discriminated against. Other criteria that are taken into consideration for a risk assessment include the following: credit rating, education, occupation, and location. Many families who have a household income that is less than $37,000. Car insurance companies cannot ask about a driver’s income when they apply for coverage but most lower income families have poor credit scores and limited educational backgrounds.
One example that the group cited was if a man was 30 years old and had a Ford Taurus with basic auto insurance coverage and drove only 100 miles each week.
If the driver was accident free and had a graduate degree and lived in a nice neighborhood then his auto insurance premiums would be around $558 per month. If the man has only a GED or a high school diploma then he would see his premiums go up by about $70 to $71. If he has lost his job and become unemployment then his premiums would go up by more than $84. Finally, moving to the city would cost him an additional $347 while not paying the coverage in full in one lump sum payment would cost an extra $60.
According to the most recent statistics, because of this development, many lower income families drive while uninsured. Approximately 33% of these families drive while uninsured which is a crime in a majority of the 50 states.
It is hard to adapt the current auto insurance risk formula to make it more fair for lower income families. The formula takes into account many factors so changing a few of them could actually raise premium rates for everyone.
Most drivers have a hard time understanding how their insurance premiums are calculated. Every driver is different and has different data and driving records to have compared by insurance agents.
State insurance regulators should consider meeting with the CFA to discuss how the system can help lower income families so that they can pay less for their car insurance premiums. Most drivers do not want to break the law but honestly cannot afford the coverage that they are offered by insurance companies.
It is a good idea for people to try to work on improving their risk factors before seeking out auto insurance coverage. Pay down your debts, work to try to live in an area with a lower crime rate, and focus on becoming more educated if you can. Change takes time but it is worth it in the long run to get the cheapest car insurance coverage possible.
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Lower Income Families Struggling and Paying More than Upper Income Drivers
- Olivia
- $600
- Aug 5, 2022
- Tracie
- $3600
- Jun 30, 2022
- Laura
- $3600
- Jun 27, 2022
- Carol
- $400
- May 31, 2022
- Christopher
- $360
- Apr 11, 2022
- Asam
- $1200
- Mar 21, 2022
- Courtney
- $1200
- Mar 5, 2022
- James
- $3600
- Sep 22, 2021
- Gladys
- $600
- Jun 26, 2021
- Sameer
- $400
- Jun 17, 2021
- Raquel
- $1800
- Jun 2, 2021
- Sharon
- $2000
- Jun 2, 2021
- Julia
- $243
- May 11, 2021
- Stephanie
- $3240
- May 6, 2021
- Tamika
- $480
- Apr 26, 2021
- Ierome
- $500
- Apr 14, 2021
- Sydnei
- $1068
- Apr 9, 2021
- Eavan
- $1200
- Mar 29, 2021
- George
- $1200
- Mar 27, 2021
- Gregory
- $1200
- Mar 26, 2021
- Steven
- $132
- Feb 27, 2021
- Daniel
- $1400
- Feb 24, 2021
- Sandra
- $1200
- Feb 21, 2021
- Sara
- $1000
- Feb 9, 2021
- Cyeriez
- $3000
- Feb 7, 2021
- Beatrice
- $400
- Jan 20, 2021
- Laura
- $400
- Oct 27, 2020
- Angelita
- $1800
- Oct 18, 2020
- Alen
- $3000
- Oct 16, 2020
- Artie
- $2400
- Oct 2, 2020
- Sana
- $1200
- Sep 29, 2020
- Robert
- $2400
- Sep 21, 2020
- Tiffany
- $780
- Sep 15, 2020
- Alisha
- $480
- Sep 4, 2020
- Joseph
- $540
- Sep 4, 2020
- Anthony
- $600
- Aug 17, 2020
- Shuntalisa
- $1200
- Aug 10, 2020
- Kathy
- $1200
- Aug 4, 2020
- Heather
- $1200
- Aug 4, 2020
- Heather
- $600
- Aug 4, 2020
- Yvette
- $1200
- Aug 3, 2020
- Andrea
- $120
- Jul 23, 2020
- Jose
- $720
- Jul 14, 2020
- Kathryn
- $2400
- Jun 4, 2020
- Kevin
- $1200
- May 12, 2020
- Letha
- $840
- May 7, 2020
- Megan
- $600
- Apr 20, 2020
- Gregory
- $3600
- Apr 18, 2020
- James
- $1440
- Apr 16, 2020
- James
- $960
- Mar 24, 2020
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We can find you the best quotes for your unique circumstances, but we can’t change your driving record or other aspects that impact your insurance options. Here are a few things that can make a big impact now, and in the future.
Bundle your auto insurance with other policies
One of the easiest ways to save is by settling on a single insurer for multiple policies. Most insurance companies will automatically prorate savings and pass them along to you.
Consider a family or group insurance plan
Insurance costs are often lower if you share a policy with multiple people. Bundle each family member’s insurance or go in on a policy with a group to find lower rates.
Build your credit score
The better your credit, the easier it is to get a cheaper insurance policy. Insurance companies use this metric to determine insurance costs, so you’ll want to work on improving your credit to lower premiums.
Take a defensive driving course
If your driving record is a little rough, it can help to take a defensive driving course. Insurance companies often take that into account, and it can often lower your rates.
Purchase a vehicle with the latest safety features
Cars with safety and anti-theft features can help out your insurance prices because they’re less likely to be stolen or damaged. Definitely take a look at these.
Ask about discounts that might be available
Depending on your personal history and a few other factors, there may be a discount or two you qualify for that could lower your rate even further. Some of the most common discounts include good driver or senior discounts.
The opportunities to save even more by applying a discount to your rate are everywhere. Get more affordable car insurance with these discounts:
- Military and Federal Discounts
- Safe Driver Discount
- Good Student Discount
- Multi-policy Discount
- Safety Feature Discounts
- & More!
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"After being with my insurance company for just shy of 10 years, and after having shopped at companies that everyone around my hometown swore were the cheapest, I decided to shop here... and ended up saving just under $1,100 off my annual insurance bill, which is a lot more than I ever could have imagined anyone saving, especially me, an avid online shopper and extreme bargain hunter [...]”
- Jared
If you’re ready to see how much you could be saving on insurance premiums, look no further. Get quotes from the top insurance companies in less than five minutes!
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