Auto Insurance Rate Discrimination
Auto Insurance Compa
nies can not discriminate against based your race, religion, age, gender, marital status, geographic location, or disability. If the underwriters can show valid evidence that any one of these categories presents a greater risk for a loss then they have a valid argument on the bases of sound underwriting or actuarial principles.
If you feel you have a valid claim for discrimination, most companies have a toll-free telephone number listed on the policy to provide customer assistance. If you are not satisfied with the company’s finale, each state has a Consumer Protection Division to consider your grievance.
If these avenues fail solve the possible discrimination, the law provides for suing an insurance company for failing to follow anti discrimination which also includes refusal of insurance. These suits are filed in your district court, but be careful to make sure that your litigation is in good faith, and is based on solid grounds. The down side is that if the court finds that the suit is baseless and filed for harassing, you might be ordered to pay the auto insurance companies legal expenses.
Let’s consider a few circumstances that may place you on shaky ground. General males between the ages of 16 to 25 pay about 6 to 7% higher premiums than females with an equal record regarding tickets and accidents. Statistically male drivers based off of studies have proven to be more dangerous drivers and actually hold 77% more fatal car accidents.
If your neighborhood has a high rate of theft and vandalism, you can expect higher car insurance rate.
If you have a number of speeding tickets, DUI/DWI or reckless driving, many companies may not even accept your applications and of they do you can expect to pay higher auto insurance rates.
The bottom line is that the law requires that every car insurance applicant is treated with equality since it is the law that you are to be covered under insurance before driving on a public road. Should the insurance company discriminate against you, they have to show cognizable evidence that you are a greater risk by comparison to others. They can not refuse to renew your policy when a young driver is added to your policy.
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