Auto Insurers Accused of Discriminating Against Low-Income Drivers

auto insurance companies

Auto insurance companies are guilty of unfairly pricing coverage based on factors such as occupation, education level and marital status, according to a new survey released by a national consumer group. The survey revealed that the criteria auto insurers are using to price car insurance rates may be resulting in discrimination against low-income drivers.

Do Auto Insurance Companies Discriminate?

The Consumer Federation of America released a survey last week that revealed many auto insurance customers feel companies unfairly price car coverage based on factors that are unrelated to driving abilities, like profession, the amount of education acquired and marital status.

After surveying insurance customers, the group looked at price quotes on various insurance company websites, and learned that changing these specific variables did make the difference in annual premiums. It says these factors unfairly target low-income drivers with lower-paying jobs and less education who may not be married.

The group is developing a campaign against auto insurance companies in an effort to change insurance regulations. It maintains that premiums “should largely reflect factors such as accidents, speeding tickets, and miles driven, over which drivers have some control and which directly affect insurer costs.”

How to Acquire Fair Car Insurance Rates

While the group is planning to take steps to make changes to insurance regulations, currently, rates are set differently in each state by state lawmakers and heads of each state’s insurance department.

In other words, it may be difficult to avoid these factors when obtaining a quote. But this doesn’t mean finding affordable car insurance rates is impossible. Here are some options to consider:

  • Shop around: When looking for an auto insurance policy, don’t stop at the first company you encounter. Instead, shop around with numerous companies until you find a quote you like.
  • Shop online: Many insurance companies reward customers who purchase coverage online, which may help you save money.
  • Ask about discounts: In addition to the online discount, you may be able to save money if you sign up for a PAYD discount, bundle your policies, or participate in other discount programs.

Saving money on auto insurance doesn’t have to be difficult. In fact, it can be easier than you think. So before assuming that you must accept the rates handed to you by auto insurance companies, take your own steps to lower your car insurance rates.