Major auto insurance companies are charging good drivers as much as 47% more for basic liability Auto insurance if they don't own their home, according to an analysis of premiums by the Washington, D.C.-based Consumer Federation of America (CFA).
Based on a sampling of insurance quotes across the country for a 30-year old safe driver, the CFA found that premiums averaged 7% higher — about $112 per year — for drivers who rent instead of own homes. Liberty Mutual penalized renters the most with premium hikes averaging $307 a year, or 19% more, for state-mandated auto insurance coverage.
Auto insurance companies' use of homeownership status in pricing disadvantages low- and moderate-income Americans, the CFA said. Federal Reserve Board data show that the median income of renters in the U.S. was $27,800 in 2013 compared with $63,400 for homeowners.
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