Auto insurance premiums reduction sought by Consumer Watchdog

California Low Income Auto Insurance Program

The group claims the agency running the car policy program is seeking to charge $40 more than necessary. According to a Consumer Watchdog actuarial analysis, California drivers who are in the low income bracket and who maintain a good driving record should be paying 3.9 percent less on their car coverage premiums through the Low Cost Auto Insurance Program. The analysis was just submitted to the California Department of Insurance. The auto Insurance Commissioner in the state is now performing an annual review in order to decide whether or not…

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Study suggests that auto insurance may be too expensive for low income drivers.

A new study from the Consumer Federation of America (CFA), a consumer advocacy group, suggests that auto insurance is too expensive for the poorest Americans to afford. CFA claims that this is to bias seen in the insurance industry despite the fact that insurers cannot base prices solely on a person’s income. In most states, however, insurers can use socio-economic information to price policies, which directly correlates to income. This could be a major problem in states in which auto insurance is mandatory for all drivers. The study shows that,…

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Nevada low income car insurance proposal dead in the water

Early this year, Nevada legislators were considering a bill that would provide more affordable car insurance policies to low-income families. The bill had gained momentum in Las Vegas in its early days, but support waned as months passed without comprehensive amendments. It was announced that the Nevada Senate had terminated the bill, leaving its sponsor, Assemblyman Kelvin Atkinson, to go back to the drawing board. Atkinson expressed his disappointment with the lack of Republican support for the bill, but has hopes that a similar measure will be passed in the…

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Nevada low cost car insurance program on the line

New legislation in Nevada that seeks to provide affordable auto insurance to the poor is facing renewed opposition as it inches closer to being signed into law. Introduced and championed by Assemblyman Kelvin Atkinson (D-NV), the bill intends to establish a low-cost auto insurance program that is tailored for those living below the poverty line. Since the bill’s conception it has garnered support. Now a new wave of opposition is mounting in the Senate against the legislation. Atkinson believes the bill will have a real, if modest, impact on those…

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