Why Car Insurance is worst for the Poors

The law says you need car insurance . Private companies sell car insurance, But the poor bear real costs. With the exception of high profiles of mortgages, student assistance, and day-to-day loans, there is no higher income tax rate available than in the car insurance industry.

The car is the most seized non-financial asset in America. By law in almost every province, a person's car must be insured. Car insurers therefore remain in a unique and secure position in the U.S. economy. People need the government to buy car insurance, but they can only get it in the private sector for a profit.

             
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Negotiations on the economic gap need to include purchases such as car insurance - a small loan related to expenses such as student loans, but one that adds up over time. As people underestimate how much they lose money as a result of small (but frequent) domestic decisions, the impact of these small household decisions on the economic gap is often overshadowed by large ticket attendance, single use such as home and college. Patterns that widen the economic gap can be particularly instructive in a country with zero car insurance, where there are effective and continuous transfers of wealth in the form of discounted insurers that invest in one pool of (poor) and one (rich) insured drivers.

Travel is very important in high travel. Labor economists, social scientists, and urban policy historians have all documented the state of the world with opportunities related to reliable travel. To reconcile state data on car insurance premiums with a small sample of car ownership and labor market results, a 2002 study in the Urban Economic Journal found that car owners were more likely to be employed, working an average of 11 to 16 hours. more per week, and earn 40 percent more per hour than those without cars. "Losing access to the vehicle is tantamount to lowdown income," the study authors conclude.

Within a reliable travel environment, car insurance remains an unavoidable amount of money. An analysis of the average of 33,313 US zip codes (43,000 zip codes nationwide) from the six largest insurers shows that the average city driver pays more than $ 247 per year for compulsory liability premiums than a city driver with the same profile statistics (e.g. age, gender, shape and model of vehicle, driven for annual miles) and driving record (e.g. no tickets, no accidents). Thus, moving from a city to a suburban area saves the driver, on average, $ 247 each year.

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While the financial cost of posting code may not seem like much, $ 247 is greater than the $ 227 percent of the 60 percent taxpayers would have received under the 2001 Bush tax cuts - a tax that was generally accepted as a way to boost the US economy. Extended over 50 years by the average American driving, that annual $ 247 gap grows to $ 12,350. What is worse is that driving without insurance can lead to arrest and fines and, in the event of an accident, reimbursement for loss of life and property. It’s not that city car drivers, they can’t, pay insurance; instead, that the zip code calculus used by insurers yields the most paid fees for them, usually the price of these drivers in the market as a whole.
Insurance providers have always said that their policies do not reflect color, but race adherence is always unavoidable when immersed. While today’s policies may not explicitly discriminate on prices, today’s insurance rates are the legacy of Jim Crow. Different racial targets and the impact of insurance prices have "closed" inequality almost from the beginning. Throughout much of the 20th century, insurers identified and sold blacks of various, more expensive, products. These different pricing policies have affected all aspects of black people’s policy holdings, including stock options; pension; and health, health, and, of course, car insurance. The racist policies of insurance have resulted in blacks getting higher premiums and lower stock options. Nonwhites were often performed under complex sophisticated processes that produced less, more expensive policies and fewer benefits.

But with the advent of the civil rights law in the 1960s, insurers feared that their long-standing practice of accounting for owners' accounts in applications could fall under massive human rights scrutiny and possible enforcement. So industry leaders simply replaced racism with “writing.” Landmarks were included in the revised application forms without questions about race. Landmarks can vary with zip code locations and will be accepted in all sectors of the insurance business, including auto insurance. By increasing poverty, women also pay higher prices than men. Women were more likely to live in poor zip code areas where prices were often higher regardless of driver's suitability.
Compounding the problem is the lack of reliable and efficient public transportation in many parts of the world. As industrial activity shifted from big cities to cities, changes in the building economy were exacerbated by declining public support for mass transport. As William Julius Wilson wrote of the disappearance of high-speed travel in the country's inner cities, "Between two cars in the middle and rich families, the movement of travelers is accepted as a fact of life.