Here’s some news that many might not believe and may even upset a few drivers. Earning more money could get you lower automobile insurance rates, as opposed to those who don’t make a lot of money, according to resent study conducted by consumer advocacy group Consumer Federation of America.
“We were looking at all the factors that tend to be affiliated with people making less money,” said Bob Hunter, director of insurance for the Consumer Federation of America.
Results of the Insurance Study Conducted by Consumer Federation of America
The following insurance study results were collected from new reports:1
- The study had two types of drivers ask for insurance coverage quotes from insurance companies.
- The study covered ten major cities and two hypothetical drivers:
- High Paid Driver – Has had a bad accident in their past or had a previous driving under the influence (DUI) on their record. This driver works as an executive at a bank and has a master’s degree. This driver is married and owns a house.
- Moderately Paid Driver – Has had a clean driving record. This driver works as a bank teller. They have a high school degree, single and lives in a rented home.
- 20-out-of-38 cases showed the higher-paid driver with a troubled driving record got a cheaper quote than the driver who made less and had a better driving record.
- All of the drivers had some similarities, such as they were all 30-year-old women living as the same address, where they’ve held a driver’s license for 14 years. They all also drive a 2006 Toyota Camry that they drive an estimated 10,000 miles every year.
- Insurance rates were requested from Allstate, Farmers, Geico, Progressive and State Farm.
- The study found that those ranking with “higher risk” characteristics got higher quotes.
- They study’s researchers say risk factors taken into consideration by insurance companies included job status, age, education level, credit history, marital status and gender.
How to Make Insurance Rates More Equitable for Those Who Make Less Money
Since insurance companies use factors to determine insurance coverage rates, researchers say perhaps regulation could limit or introduce factors that could help lower insurance costs for those with financial struggles.
- If insurers were required to weight driving records more heavily, then those with the cleaner records would get better rates.
- It’s best consumers shop around for the best rates, so they can compare rates given from rival insurance that might save them money companies.
- Consumers should shop around rates every couple of years, if they want to get the best rates.
- By not shopping around for better rates, many consumers are said to be paying a penalty for loyalty.
Contact a St Louis DUI Lawyer at Brown & Brown Attorneys at Law
Have you or a loved one been injured in an auto accident involving a drunk driver (DUI), if so contact the St Louis DUI Lawyer at Brown & Brown Attorneys at Law for exception legal representation in any legal setting. Our St. Louis DUI lawyer has a long-standing commitment to serving those who have suffered some injury as a result of careless, reckless and impaired drivers.
If you would like to learn more about how we can help you, attend a free, no-cost initial consult with our St Louis DUI lawyer at Brown & Brown. Schedule a meeting right away by calling (573) 333-3333 for our Missouri office or (618) 888-8888 for our Illinois office. To send us an email, use the form at the right-hand side of the screen.
1“Why wealthy drivers with DUIs get to pay less for car insurance” published in The Washington Post, October 2016.