The Federal Insurance Office (FIO) is investigating whether or not minorities and low income Americans have access to affordable auto insurance. While the FIO has no general supervisory or regulatory authority according to Dodd-Frank stipulations, they may soon seek Congressional approval on a plan aimed at protecting lower and middle class consumers from high insurance premiums and increasing access to vehicle insurance coverage.
The federal inquiry continues as state officials are revving up an investigation of their own about Hudson County auto insurance rate evaluation practices. A recent New York Public Interest Group study found large disparities in rates and premiums based on the economic status of motorists. The study indicated rate disparities between 19% and 25% among high-school educated workers and college educated executives. Workers with far less economic capital are being charged significantly higher auto insurance premiums than their executive colleagues.
As a result of a similar study by the Consumer Federation of America (CFA), officials are calling for full disclosure of the risk evaluation methods of many major insurance carriers. While customary risk evaluation accounts for driver history and geographic location, some companies evaluate seemingly unrelated demographic data to assess a driver’s risk exposure. The CFA study indicated that four of the five major Hudson County auto insurance providers use education and occupational background when evaluating a motorist’s liability risk. When questioned about the usefulness of such seemingly unrelated factors they alleged that the data is a highly predictive indicator of insurance claim patterns. However, these extra factors seem irrelevant to many critics and customers. New York lawmakers are investigating the legality of such practices and how they are affecting consumers. Officials suggest that should these practices prove to be unfair and harmful to the public, legislative action may be taken to ensure equal access to fair pricing.
When searching for Hudson County auto insurance you benefit by shopping around and exploring your local options. At Tri-State Insurance Agency we work with a number of insurance carriers to provide our clients with the best Hudson County Personal Auto Insurance coverage for the lowest rates. We understand that you are not just a group statistic and work with you to assess your needs as an individual. Also, if you drive for business, our comprehensive Hudson County Transportation Insurance coverage can protect you as well as your company. Call us today at (888) 990-0526 for a free evaluation of your Hudson County auto insurance needs.