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  • Reports That Rich, Poor Charged Differently for Auto Insurance

    (EMAILWIRE.COM, February 07, 2012 ) Atlanta, GA -- Low and middle-income drivers are charged from between $700 and $1,000 more per year for their auto insurance than are wealthier drivers according to new report released by the Consumer Federation of America.

    The report, sporting the catchy title of, “Lower-Income Households and the Auto Insurance Marketplace: Challenges and Opportunities,” makes the claim that "In large part because of high costs and disparate impacts, a significant minority – perhaps one-quarter to one-third – of (these households) do not carry auto insurance and are driving illegally."

    The study says that a driver’s record is not the sole determining factor when it comes to auto insurance costs. Other factors, such as home address, help set how much any particular driver has to pay. Furthermore, poor and middle-class drivers are often not in the position to take advantage of the multi-vehicle discounts that wealthier users of the road are able to.


    Auto Insurance Insider provides in-depth car insurance industry news both for industry insiders and policyholders.

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