A new report by the Washington, D.C.-based lobby group, Consumer Federation of America claims that poorer Americans are not getting the lowest auto insurance premiums.
As a rule, insurance companies are not allowed to factor in income when it comes to determining auto insurance premiums. However, they are allowed to consider the driver’s occupation, address and credit rating when creating an auto insurance quote.
“In some areas, many responsible lower-income drivers are required to spend more than $1,000 a year for liability coverage that is often unfairly priced and provides no real insurance protection to them,” said Stephen Brobeck, executive director of the consumer group.
Additional report findings include: higher rates for drivers that make $37,000 or less annually, and the amount of miles driven daily to reach the workplace.
The National Association of Insurance Commissioners decided not to comment following Monday’s release of results until ample time has been devoted to study the results.
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