“There are numerous studies out, on a national basis, that have identified cars as the number one poverty fighting tool that we can provide to a low-income family,” says Marty Schwartz, president of Vehicles for Change, which helps low-income families purchase an automobile.

He says the association has awarded over 4,000 cars since 1999 to people of low income, making an average of $18,000 a year in Maryland, Virginia and the District of Columbia. Once they have a car, these individuals are able to get out and find a job that can increase their salary by $7,000 a year, he says.

In that context, CFA surveyed Progressive, State Farm, Allstate and GEICO to see how much auto insurance would cost for someone in a major city.

Stephen Brobeck, executive director of CFA, outlined the group's process of seeking coverage in 15 cities for two hypothetical consumers—a man who is a 27-year old laborer, and a woman who is a 35-year old bank teller. Both hypothetical consumers have clean driving records, good credit ratings, are renting homes, and each has a median income of $30,000. Both are single and have high school degrees.

In the 15 cities—Boston, Washington D.C.; Baltimore; Atlanta; Miami; Charleston, W.Va.; Louisville, Ky.; Chicago; Sioux Falls, S.D.; Denver; Houston; Phoenix; Las Vegas; Los Angeles and Oakland, Calif.—over half of the quotes were at least $1,000 and close to two thirds were $1,500.

The study found that the man was quoted somewhat higher overall than the older woman, but not by much. Fifty-seven percent of the man's quotes and 53 percent of the woman's quotes were at least $1,000.

Brobeck and Robert Hunter, director of insurance for CFA, argued that one thing the study indicates is that there is a lack of competition in the marketplace.

True competition, they say, would mean that all the insurers would be closer together in price, but in the some cities, the price ranged from as low as $620 from GEICO in Charleston to $1596 from Allstate for the man.

“This is not a very competitive market,” says Hunter, arguing that many consumers are poorly informed about choice and trying to compare rates is very time consuming.

Hunter suggested that a major reason the rates are so high in these markets is because of territory, but other factors such as education, length of time driving may come into play.

Hunter notes that, according to the National Association of Insurance Commissioners, the average price for liability insurance in the United States is $474, with New Jersey having the highest state average of $750.

Brobeck says, “$700 is a lot to pay when someone has minimal amount of coverage.”

Responding to the CFA's study, Alex Hageli, director of personal-lines policy for the Property Casualty Insurers Association of America, says he believes the study underscores that there is, in fact, significant competition between carriers.

“[CFA has] a different definition of competition than I do,” says Hageli. “If they were all the same price, then why should there be three carriers? There would only need to be one.”

He agrees with CFA that lower-priced insurance options are needed, through reduced limits. However, he says the best way to achieve that is to eliminate mandated coverage and allow free-market principles to do the job.

However, there is no political will to change the auto-liability laws in the states, he says.

“It is not going to happen because people have this idea that there has to be a law on the books for people to have insurance,” says Hageli.

Robert Detlefsen, vice president, public policy for the National Association of Mutual Insurance Companies was critical of the CFA saying that it was not clear what information was given to insurers, which could influence underwriting and it is also not know if these carriers are major writers in these markets.

“If they wanted to make an intellectually honest study of how much insurance would cost consumers they would have called up independent agents in these cities and asked them what was the cheapest insurance they could get,” says Detlefsen. “The results of this study would have produced numbers that would be very different from what they got. It is flawed and intellectually dishonest.”

In a statement, James J. Whittle, assistant general counsel and chief claims counsel for the American Insurance Association says, “To be priced properly and avoid cross subsidies that distort markets, it's important that auto insurance rates reflect risk and will often take into account multiple factors. For those drivers living in cities, these factors can include: the likelihood of crime against motor vehicles, total number of accidents in a given area, population density, parking accessibility and, of course, a driver's personal driving record. Insurers are committed to ensuring that consumers receive the best rate and coverage for their vehicle. Consumers are encouraged to shop around, and ask question before determining which carrier is right for them.”

Robert Hartwig, president of the Insurance Information Institute says in a statement that “The Consumer Federation of America wants to know why the same person, with a good driving record, is receiving price quotes that vary so widely. The answer is simple. The markets for auto insurance are highly competitive. In addition, the experience of insurers in these markets will differ, leading insurers to price the risk of a prospective policyholder differently.”

In noting the different prices individuals paid for insurance, he criticized the CFA for not pointing out or explaining that rates in suburban areas are generally higher than they are rural communities.

“More importantly, increases in the cost of auto insurance nationwide remain in line with the Consumer Price Index, rising by less than 3 percent so far in 2012,” Hartwig stated.

This story was updated at 5:18 p.m. EDT with comments from Robert Hartwig.