The Insurance Information Institute announced the auto cost for an average US driver is expected to increase for the 3rd straight year.
The increase is due to the fact that insurers charge more to raise profits affected by increased cost from natural disasters and record-low interest rates. The auto coverage may rise 2.8% to $839 from $816 last year, but still lower than the $842 average in 2004, when a survey was released according to which American adults object to companies which use clients’ occupation and education level to help set rates.
“Low- and moderate-income families who are disadvantaged by insurer pricing policies need affordable liability coverage so they can drive legally,” said Stephen Brobeck, executive director of the CFA. “The fact that these families often can’t obtain this coverage helps explain why so many risk fines, or even imprisonment, by driving without insurance.”
Therefore if the state regulators do not slow or stop these increases the most severely punished will be the poor, as the cost prohibitive auto insurance coverage will push them to drive illegally.