Good drivers covered by high-risk automobile insurers may find it hard to overcome that stigma when seeking new coverage from a standard insurer, a new analysis suggests. Drivers who switch from a high-risk or “nonstandard” auto insurer to a large standard insurer may be quoted higher rates, even if they have safe driving records, according to the analysis by the Consumer Federation of America. Three major mainstream insurers often quote such drivers significantly higher premiums, compared with quotes for drivers who were previously insured by large standard insurers, the analysis found. The practice may particularly harm drivers in low- and moderate-income communities, making it difficult for them to find affordable insurance rates, said Douglas Heller, an insurance consultant who conducted the study for the federation. Often, he said, drivers in low-income or underserved areas have few options other than nonstandard insurers, even if they themselves have clean driving record...
The financial shock of adding a teenager to a family auto insurance policy is getting less shocking — at least somewhat. An annual analysis by insuranceQuotes.com, a rate comparison site, found that adding a teenager still increased annual premiums substantially, but the magnitude of the increase has been falling over the past few years. Adding a single teenager to a policy caused annual premiums to increase an average of 78 percent, or $671. But rate increases have been decreasing since 2013, when the average increase was 85 percent. Laura Adams, senior insurance analyst with insuranceQuotes, said that factors in the trend may include safer automobile technology, a dip in the number of teenagers getting driver’s licenses and the continued impact of “graduated” driving programs, which place restrictions on new drivers until they gain more experience on the road. But the impact of adding teenagers to a policy is still a jolt to families, especially those adding boys. Putting ...