WASHINGTON—Personal lines auto insurers do not offer a basic insurance policy to safe drivers living in more than one-third of the nation's low-income areas, the Consumer Federation of America said Monday in a new report.
"Our research raises important questions as to whether state-mandated auto insurance is priced fairly and is affordable for many lower-income Americans," said Tom Feltner, CFA's director of financial services and the principal author of the report. "Drivers need a car to get to work or school. High insurance premiums act to deny these Americans economic opportunity and also help explain why so many lower income Americans drive without insurance," he added.
The CFA identified a policy costing less than $500 annually as the ideal insurers should work toward, and said a 2013 survey showed that 76 percent of Americans believe that such a policy should be made available.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
