Does Ethnic Background Affect Insurance Rates?
The world of insurance premiums is a complex place. Identical coverage for the same person can vary greatly. What causes these variations? Back in 2003 two authors at the University of California, researched this exact question. With the help of the Lewis Center for Regional Policy Studies, they were able to pinpoint many interesting causes. The full report can be found at http://www.uctc.net/papers/654.pdf . This paper explains many reasons for California car insurance cost differences.
Geographic area seems to be a huge factor in car insurance rate variations. Inner cities have the highest accident and crime incidences and subsequently the highest costs for insurance. People living in suburban and rural areas may have insurance costs hundreds of dollars lower than urban dwellers. Geographic regions can be split by zip codes or area codes. To find out which your California car insurance company utilizes, give them a call.
Income range is also a major factor in rate quotes. There are higher incidences of late payments and non-payments in the lower income range. Insurance companies try to offset the missed payments by charging higher rates among these individuals. Some states have taken steps to try and alleviate this borderline discriminatory practice.
The two factors, geographic region and income range, target poor inner city non-whites the most. This has led some to try and regulate what basis premiums are set by. Voters have approved propositions to limit insurance determination factors to age, record, and years driving, but courts continue to overrule them. To date it remains controversial and California car insurance companies continue to be allowed to use zip codes as premium determinations.
In the insurance company's defense, insurance is a business. They should be allowed to recoup their costs in higher risk areas. If they paid more out than they brought in, the company would go out of business. It doesn't seem that they are targeting minorities on purpose, it just happens that the majority of residents in a targeted area fall into certain ethnic categories.
California car insurance companies use many determinations in car insurance rate quotes. Saving money on your policy may be as simple as moving out of the city into a suburban or rural area. Searching for and landing a better paying job may also save you a few hundred dollars. If this is not possible or you like your current employer, job longevity will also help bring your rates down.
Related Tags: auto insurance, insurance rates, discount insurance rates, geographic area insurance rates
To check the rate variations in your area among California car insurance providers go to http://www.carinsuranceguy.info/ and apply for a few free car insurance rate quotes in different zip codes.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Motor Trade Rundown
It is not just cars that must be insured on British roads, every type of motor vehicle is required b - Claiming Compensation For Defective Products
Compensation claims for injury and damage caused by faulty, defective products normally target eithe - Ideas To Uncover Affordable Rate Auto Coverage
These days, everyone is looking for ways to lower expenses. Certain costs like home and car insuranc - Should It Be Illegal For People To Drive Without Vehicle Insurance?
There are many drivers on the road who drive un-roadworthy vehicles. The worst part is not that they - Do You Need Static Caravan Insurance?
Static caravan insurance is an automobile insurance that deals with vehicles that are used while on - Insurance - Tool For Personal Finance Planning
Financial planning is must for every individual. When we start saving money for our goals, there is - Family Life Insurance Policy For The Families Staying In Dubai
The main motive of insurance policy is to give financial security to the person's family especially - Buying Temporary Health Insurance In Florida
You are the resident of Florida? You are between jobs and therefore are not looking for a long term - Car Insurance Is Of The Utmost Importance In Today's Lifestyle
In today's hectic lifestyle we are always rushing to get from one place to another, whether it be ru - Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates
Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up
Most viewed articles in this category:
- International Health Insurance: Insure Yourself While in Go
We all will agree that whether we are living in our home country or abroad, our health needs constan - It's Never Too Early to Buy a Long Term Care Health Insurance!
Most people delay buying a long term care health insurance because they think that it is too early t - Home Owner Insurance Quote: Stay Safe!
Your house will not be fully secured until and unless you have a home owner insurance policy. A home - The Benefits of Health Insurance Are Immense!
Almost everyone in this world has fallen ill sometime or the other. Apart from illness, many people - What Happens When You Make An Insurance Claim?
If you've never filed a loss claim before, you might feel nervous and confused about the whole proce - Pet Health Care Insurance: Show your Pets That you Care!
Having a pet in one's household is a joyful experience. It can provide you with entertainment, compa - Three Ways to Buy Long Term Care Without Paying Premiums Out of your Pocket
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home an - Protect That Bauble: Engagement Ring Insurance
Engagement ring insurance can protect your bauble in case a worst case scenario happens...So you've - Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond ring insurance you probably do. There's somethin - Choosing a Benefits TPA
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. Accor
