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Posts Tagged ‘insurance rates’

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.

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“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…)

Top Five Most Expensive Moves for Insurance Rates

Two of the moves involve Detroit.

by on Oct.14, 2014

A move, especially from a small city to a large one, can have a significant impact on your insurance rates.

Location, location, location. It’s not only the mantra to follow when buying real estate, but also when trying to insure your car, truck or minivan. For those contemplating a big move from one city to another, it might play a role in the decision to move or not.

While most folks know they are going to pay more if they live near a large city, some moves will cause a significant spike in rates that may exceed 500%.

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Of the top five increases for what vehicle owners will pay for insurance when they move, not surprisingly, two of the new destinations are in or near Detroit. The top five most expensive moves include: (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.

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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…)

Missouri Offers Most Car Insurance Discounts in U.S.

Good students can earn the biggest savings to offset their high premiums.

by on Oct.21, 2013

Insurance companies offer "good student" discounts more often than any other price break.

Aside from the monthly payment, the “cost” usually associated with vehicle ownership is fuel. However, people often forget about the expense of insuring their vehicle.

Most importantly, it seems like every insurance company touts the discounts they offer, but when looking for discounts it seems it’s where you live rather than what company you use.

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Residents of Missouri, Connecticut, Indiana and Wisconsin enjoy more discounts than any other state. Each of them enjoys the potential to save money more than 32% of the time. (more…)