Detroit Bureau on Twitter

Posts Tagged ‘car insurance prices’

Low- and Moderate-Income Drivers Penalized by Unfairly High Insurance Rates

New study claims most insurers discriminate based on income, education levels.

by on Jan.26, 2015

The Honda Civic may cost more, unfairly so, to insure if you live in the inner city, according to the CFA.

This story has been updated to include a response to the CFA study by an insurance industry trade group.

Millions of low- and moderate-income American motorists, especially those with lower education levels and living in inner cities, are being unfairly penalized with high insurance rates, even if they have steady jobs and clean driving records, contends the Consumer Federation of America.

In a survey of 15 cities and surrounding suburbs, these motorists routinely were required to pay at least $900 for collision and comprehensive coverage, with 50% being hit with bills of more $1,500, according to a new CFA study that checked rates for a 30-year-old female bank teller with 10 years driving experience and no collisions or tickets on her record, owning a 2004 Honda Civic.

Stay on Top of the News!

“The price can easily double or triple” for a person of moderate means and lower education, said J. Robert Hunter, the consumer group’s Director of Insurance and a former Texas Insurance Commissioner. (more…)

Insurance Rates Change More Wildly than Gas Prices

December is often cheapest month for insurance, study claims.

by on Jan.30, 2014

Laura Adams, analyst for InsuranceQuote.com, said the key to offsetting month-to-month rate changes is getting multiple quotes.

While most vehicle owners are used to seeing fluctuating gas prices – and trying to find ways to offset them – what they may need to pay more attention to is ever-changing insurance prices, according to a recent study.

Depending upon the month and the state, insurance rates can vary by nearly 50%. Hawaii saw a 47.9% difference between its cheapest month, December, and its most expensive month, March, last year.

Get a Free Subscription!

Wyoming (39.7%), Washington, D.C. (35.3%) and Maryland (34.8%) were next in line with the largest variance in rates. Conversely, South Dakota had the smallest difference at 3.7% followed by Arkansas, Utah, Iowa and Kansas, which were all below 6%. (more…)