The Hoffmann Law Firm, L.L.C. Articles Study Discusses Insurnace Rates After a DUI - St. Louis Auto Wreck Lawyer

Study Discusses Insurnace Rates After a DUI - St. Louis Auto Wreck Lawyer

By Christopher Hoffmann  Jun. 27, 2017 1:26p

Study Shows Richer people with Previous DUIs Pay Less for Car Insurance

As bizarre as it may sound, people with more money than you, with previous DUIs might be getting better deals on their car insurance. A recent study into this has come up with some highly interesting results which we shall look at in more detail.

The study was conducted by the Consumer Federation of America, an advocacy group. To get their data, they had drivers get quotes for car insurance across ten large cities. For each query, a pair of drivers would both get a quote from several insurance companies. Some of the facts about themselves they gave were identical, but some were different. In this post, St. Louis car wreck lawyer will discuss the results of this study.

The different scenarios for data gathering

Rich driver

One driver would set the scenario as being highly paid and with a DUI or a serious accident on their record. They informed the insurance companies that they were married, a home owner, with a master’s degree and a job in banking.

Poorer driver

The other driver would tell a different story. They declared a moderate income, and told the company that they rented their home, that they had a high school degree and worked as a bank teller. Additionally, they declared a clean driving license.

Both drivers

Both drivers would declare that they were a female aged 30 and they would both would give the same home address. They both stated they owned the same car, a 2006 Toyota Camry and they both estimated that they drove around 100,000 miles a year. They would also both state that they had held their driving license for 14 years.

The companies contacted

Quotes were obtained from:

State Farm





The results of the study

Amazingly, out of 38 quotes, in 20 cases, the richer driver with the worse record was given a lower quote than the poorer driver with the clean record. So you see, those that were the biggest risk, but the higher earners, got the lower quote. So it would appear that income and an affluent lifestyle is of greater influence on the algorithm used to generate quotes than previous driving convictions.

This doesn't really seem fair does it? Having more money doesn't make anyone a better or safer driver. So what can do to ensure you aren't paying extra simply for being on a lower income?

The key is to shop around. Not all insurance companies do this, so find one that doesn't. Never accept the first quote you get and when you get renewal each year, do some research and find out if you can get a better deal elsewhere. It really isn't much hassle to switch.

If you've been injured by a drunk driver, give our attorneys a call for a free case evaluation. Call (314) 361-4242 to learn more about your legal rights.

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