Research conducted by the Consumer Federation of America has shown that this coverage is tough to afford.
A recent report has been issued by the Consumer Federation of America (CFA), which reveals that the vast majority of Americans (76 percent), feel that minimum liability auto insurance coverage for under $500 per year is a fair amount to pay, and 40 percent believe that drivers should have to pay an amount under $250 per year.
That said, the five largest vehicle insurance companies in the United States do not offer that level of policy.
The big five in the country – Allstate, State Farm, Progressive, Farmers, and Geico – do not include a basic auto insurance policy with an annual premium of under $500. For people with higher incomes, this may cause a grumble, but they can still manage. However, for individuals who have low incomes, those high premiums can frequently make the coverage cost prohibitive. This can lead them to drive while uninsured, despite the fact that every state (aside from New Hampshire) require that drivers at least carry liability insurance. Facing high annual insurance premiums has also been found to limit education and career growth opportunities.
Nowadays, people need to be able to drive in order to get to school or work, and auto insurance costs can hold them back.
According to the lead author of the CFA report, Tom Feltner, “High insurance premiums act to deny these Americans economic opportunity and also help explain why so many lower-income Americans drive without insurance.”
_________________________Random Success Quotes to Remember ~ “Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better..” - Jim Rohn
The price of this coverage can vary broadly from one location, insurer, and customer, to the next. At the moment, the cities that have the highest insurance premiums in the country include: Detroit, New Orleans, Grand Rapids, Newark, and Baton Rouge.
This year, the Federal Insurance Office started to track the auto insurance rates being charged in each of the states, for the purpose of determining how affordability should be defined in this sector and to be able to better measure affordable coverage, particularly among minority and lower income motorists. For the moment, drivers are advised to regularly review their policies and compare quotes from insurers to ensure that they are paying as little as possible for the coverage and service they need.