The results of a new study indicate that drivers who make less money are paying substantially more for the same insurance as drivers who earn more, despite having identical driving records.
The study is based on a collection of data covering hypothetical drivers in 15 cities. Five major insurers were included in the study to give the data a more representative result, including Allstate, Farmers, Geico, Progressive, and State Farm. Researchers used a hypothetical married man and a woman who both were employed in white collar professions, both maintained auto insurance in the prior six months, and owned their cars. In comparison, researchers also sought quotes for a single man and single female who worked blue collar jobs, had not previously owned a car for six months or had automobile insurance, and rented their homes.
Though the driving records of the hypothetical motorists in the study were identical, the insurance quotes offered to those drivers varied by an average of 59 percent with the blue collar workers facing higher charges than their white collar counterparts.
The researchers noted that some areas failed to provide quotes to the blue collar drivers while others offered only quotes with a high-risk affiliated company.
The difference in price varied significantly among companies and from one city to another city, leading drivers across the nation to question whether they are paying a fair rate for their coverage. If you drive in the State of Illinois, you must be insured with coverage that meets or exceeds state minimum standards. However, numerous companies specialize in offering these minimal policies and consumers often find that their coverage is not all they believed it to be after a car accident takes place.
Chicago drivers should do their own research before committing to an automobile insurance policy and getting quotes from multiple companies is a good place to start. That way, you can compare levels of insurance as well as rates and determine what makes the most sense for you and your family. Plus, you can sort through additional optional coverage, like coverage for collisions or rental vehicles, before making a final decision.
Note that it is unwise to make an insurance choice on price alone. Often, cheap policies offered by companies with poor reputations may be an unwise choice for motorists who want to ensure they are covered in the event of a crash. Rather, being more selective with a policy and with a company will better serve the majority of drivers in the city and will help to keep everyone protected on the roadways.
Further, know that your own actions and your personal conduct can go a long way to determining the rate you pay for automobile insurance. Events like multiple collisions, suspended licenses, numerous traffic citations, and an unreliable credit history may mark you as someone risky to an insurance company, increasing the rate you see and the price you are expected to pay to be covered. While you may not be a perfect driver in every situation, do your best to drive in a safe and reasonable manner so that you can minimize as many negative interactions on the street as possible, keeping your driving record in good standing and making yourself a more attractive customer to an insurer.
Prior Blog Entry:
Bike Messengers are 13 Times More Likely to be Injured than Other Employees, Chicago Car Accident Lawyers Blog, published June 17, 2016.
Auto Insurance Is Costlier at Lower Incomes, Study Says, by Ann Carrns, The New York Times, published June 29, 2016.