New York, NY (PRWEB) June 25, 2012
Studies repeatedly find that minorities such as the African-American, Hispanics, immigrants, disabled people, seniors or veterans, unemployed or even single mothers tend to pay higher car insurance rates for the same or similar vehicles. “The situation is alarming and does not seem to improve,” explains Steve, project manager at http://www.carinsurancecalculator.info. “It is sometimes hard to understand why those who already might suffer from financial hardship or even discrimination tend to be disadvantaged when it comes to financial security mechanisms such as insurance. Some would suspect insurance companies even of redlining.”
Examples, such as given in a study by NAIC, 2010 show rates of up to 26% higher in Latino areas for basic coverage, or even the plain unavailability of insurance for certain groups. The very same study cites critics attacking the scoring system as “flawed”, ”socially unwise” and ”unfair” to individuals. The study is a mere example of many.
“This is a very interesting and ample field of research, and an important debate” adds Steve, “We felt it would be best to not only summarize these findings in plain English, but also to offer countermeasures and fitting strategies for consumers, whether affected or not, to keep their rates low.”
The new guide issued by CarInsuranceCalculator.info is available free at http://www.carinsurancecalculator.info/490/why-minorities-and-the-poor-pay-more-for-auto-insurance-and-what-to-do-about-it/ and names the main areas which may make LMI vulnerable to higher auto insurance rates. These are in short:
• Insufficient savings and the need for finance
•Increased risk of claims
•Demographics, such as location
Steve: “We are somehow talking about poverty traps. By all appearance, financial benefits seem to stay with those who already have them. The important task is to know the mechanisms and to overcome them; ultimately to join the club of those who are better off. There is no systemic reason why a member of a minority group should not enjoy the same rates as any 'average citizen’. High auto insurance rates should not just be taken as destiny.”
CarInsuranceCalculator.info is a web based comparison site for free auto insurance quotes and consumer information. Started earlier this year based on a set of the most frequent consumer questions regarding car insurance, the website received positive reader feedback for their guides and weekly news. All information is provided by subject matter experts and coordinated by digital publishing experts. The young team aims at becoming the one stop resource for car insurance information and quotes in all states of the US.
Read the full story at http://www.prweb.com/releases/2012/6/prweb9635932.htm