Why Do Minorities Pay More For Car Insurance ?
It seems like just about everyone is worrying about their own finances these days. But there’s one group of people who are especially vulnerable: minorities. Minorities are more likely to live in poverty, and that poverty often leads to uninsured cars and higher car insurance rates. If you’re a minority, you may be wondering why this is the case. Read on to learn more about the factors that contribute to these high rates and how you can fight them.
Minorities are More Likely to Be Busted for Driving Without Insurance
Minorities are more likely to be busted for driving without insurance. Studies have shown that minorities are over-represented in the ranks of uninsured drivers. The National Insurance Crime Bureau reports that blacks and Hispanics are more than three times as likely as whites to be caught driving without insurance. This is likely because minority drivers are more likely to be stopped and ticketed for traffic violations, which can lead to an automatic suspension of their driver’s license.
Being uninsured can also lead to major problems if you get into a car accident. Uninsured drivers are four times as likely as insured drivers to be involved in a serious car accident. In fact, being uninsured is the leading cause of death in young adults between the ages of 19 and 25.
If you find yourself facing an insurance claim after getting pulled over for driving without insurance, it’s important to know your rights. You may be able to get your driver’s license reinstated or receive a monetary settlement from your insurer. Contact an experienced car accident lawyer for help understanding your options and ensuring that you obtain the best possible outcome for your case.
Minority Drivers Are 3 Times as Likely to Be Charged With a DUI
Minorities are more likely to be charged with a DUI than white drivers, according to a study from the Insurance Research Council. The study found that minority drivers are 3 times as likely to be charged with a DUI. This is in part due to the fact that minorities have disproportionately more encounters with law enforcement.
The study also found that minorities are more likely to have prior DUI convictions. This can lead to increased rates for auto insurance, since most insurers use prior convictions as a factor in determining rates.
Minorities Are More Likely to Drive Uninsured
Minorities are more likely to drive uninsured, which can lead to higher rates for car insurance. A study by NerdWallet found that minorities are twice as likely as whites to drive without a driver’s license or an insurance policy. In some states, uninsured driving is a criminal offense, leading to harsher penalties for violators. According to the National Conference of State Legislatures, 23 states have laws that penalize motorists who drive without insurance.
The cost of car insurance can vary significantly depending on a person’s race and location. A study by the Commonwealth Fund found that people of color pay an average of $1,600 more per year for car insurance than white drivers. The reason for this discrepancy is largely due to disparities in rates based on a driver’s ZIP code. Drivers from lower-income neighborhoods are three times as likely as those from wealthier ZIP codes to lack liability coverage.
Minorities Are More Likely to Be Stopped for Driving Without a License or Registration
According to the National Minority Rights Coalition, minorities are more likely to be stopped for driving without a license or registration. This is due in part to the fact that law enforcement officers are more likely to target minority drivers. Additionally, minorities are also more likely to have less access to cars and insurance. As a result, they are more likely to be financially impacted by a car accident or traffic ticket.
Conclusion
Minorities are over-represented in the criminal justice system, which can lead to them being charged with more driving offenses and receiving harsher punishments. This cycle of disadvantage can also impact minorities when it comes to car insurance rates. In order to combat this issue, AAA is advocating for changes in the way driver data is collected and used by insurers. If you are a minority who has been experiencing higher car insurance rates, please reach out to your local AAA office for assistance in fighting for fair treatment.