Recent allegations of racial discrimination against car insurance companies in inner city areas of California suggest that insurance companies are charging higher rates for drivers who drive in areas with more minorities. Insurance companies sometimes charge more in neighborhoods with higher rates of vehicle theft, which is a reason why this could be happening. Rates are decided by how much risk you pose to the insurance company, meaning how likely you are to get in an accident or be a victim of vehicle theft.

How is Your Insurance Rate Chosen?

• Type of vehicle: Insurance companies check the value of the car and how expensive and likely repairs will be.
• Past Driving Record: People who have filed more insurance claims and have speeding tickets on their record will have to pay more for insurance.
• Annual Mileage: Companies may notate your annual mileage and charge more to drivers who use their cars more.
• Insurance history: Gaps in insurance coverage can indicate that you are a riskier driver and cause your rate to be higher.

Many factors go into deciding your insurance rate. There are also different types of insurance coverage available for different needs. To make sure your insurance policy is right for you, you may want to review the terms with an auto accident attorney. Far too often, insurance companies break the law by refusing coverage included in a contract, delay claim processing, provide inadequate claim investigation, or refuse to defend a lawsuit.

Insurance bad faith attorneys at Metier law firm are dedicated to make sure you are getting the coverage you pay for from insurance companies.