Major auto insurance companies are charging good drivers as much as 47 percent 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 percent 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 percent 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 shows that the median income of renters in the U.S. was $27,800 in 2013 compared with $63,400 for homeowners.
Recommended For You
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
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
