Auto Insurance Premiums and Low-income Drivers

Some states take aim at ‘discriminatory’ auto insurance pricing, By Sarah Breitenbach, August 28, 2015, Stateline: “Be a safe driver. Don’t buy a flashy sports car. Pay the insurance premium on time. These are maxims many drivers follow to keep their auto insurance costs in check. But they may not be enough for many low-income drivers, who consumer advocates say are routinely priced out of insurance coverage because they are judged not just by their driving records, but by their credit scores, occupation, education level or other factors. It’s a discriminatory practice by insurance companies that disproportionately increases premium payments for low-income drivers, said J. Robert Hunter, a former Texas insurance commissioner and director of insurance for the Consumer Federation of America (CFA). And some states are trying to stop it…”