In many states, low-income consumers, who usually only buy their
state’s minimum required liability coverage, are often charged more than if
they bought liability coverage with higher limits.
Unfortunately, a market that charges some consumers too much
for insurance guarantees that some will choose to drive without insurance, as
driving is so necessary to financial well-being in today’s society. The authors
of the study suggest that “pricing should be largely influenced by factors that
drivers can control, like the cars they drive and how far and safely they drive
them.” Further information is available at the original New York Times
article.
Readers: What do you think?
Should low-income
consumers who have poor credit scores, but no accidents or moving violations in
the last five years, be charged more for auto insurance than those with excellent
credit scores and the same driving record?
If yes,
why? Or, if no, why not?
