A February 7, 2018 Washington Post story disclosed that the national average insurance rate is now $1,427.  Some of the recent rate increases were due to the recent snap of cold weather especially in the South where drivers aren’t used to snow and ice. Many of the reasons for the increases appear to be arbitrary. Low-income drivers often can’t afford even the minimum state insurance liability requirements for car accidents.

Some of the uneven and unfair reasons for auto insurance increases are:

• Insurance companies are using complicated and sometimes secret formulas to determine insurance rates.
• Poor credit-ratings and the lack of a college diploma can increase insurance premiums.
• Lack of scrutiny by state insurance regulators

One website, called The Zebra, examined 50 million insurance quotes. It found that car rates have increased 20% since 2011. It also found that:

• Insurance in Winston-Salem, North Carolina costs $774, while insurance in Detroit costs $5,414.
• People with credit scores between 300 and 579 pay about $1,400 more than people with credit scores above 800.
• Drivers who fail to take a chemical test when stopped for a DUI can expect their insurance premiums to increase by about $1,100.
• Teachers pay more than firefighters or lawyers. People who are unemployed, and need a car to get work, pay the highest rates.
• Getting married means saving about $80 on insurance costs.
• Homeowners pay less than renters.
• Combining home and auto insurance saves money.
• Men and women pay close to the same rates.
• Safety features and anti-theft features don’t affect the rates much.
• A driving while texting ticket increase rates about 16%.

The insurance companies claim that people with credit scores tend to file more claims. Skeptics counter that richer people can cover the property damage costs better than lower-income people. Many wealthier policyholders prefer to pay out-of-pocket lower damages than risk a rate hike.

The Washington Post story also cited a 2015 Consumer Reports report that insurance companies prefer higher-income drivers because they aren’t as likely to shop around if they get a rate increase than lower-income drivers.

At the Rocky McElhaney Law Firm, our Gladiators in Suits fight to get our clients full compensation for medical expenses, lost wages, daily physical pain, emotional suffering, and other damages. A settlement or verdict isn’t the final phase. To get paid, the insurance companies need to pay the amount due. We understand which insurance companies should pay your claim and how much. Our Nashville, Hendersonville and Knoxville car accident lawyers help you get the insurance funds you deserve. To speak with a strong advocate, please phone us at 615-246-5549 or use our contact form to schedule an appointment.