Many people move to cities to find jobs, search for their fortune and find a community they already fit in or they can. Most of them would need a car to get to work or carry their trade. Having a personal transport improves people’s social life as well. Automobiles’ place in our lives cannot be ignored by any means and you need insurance to be able to legally drive one.
The risks associated with driving and owning a vehicle increase in cities like Los Angeles. The traffic is much heavier that leads to many fender benders. Crimes like auto theft and vandalism are much higher in cities in comparison with the countryside. Also, private parking is not normally available to most LA residents. Automobiles are left out on the roads where they could be vandalized, hit and scratched more so than quieter towns.
Auto insurance companies are well aware of these statistics and therefore they tend to charge a lot more when the applicant comes from one of these high-risk zip codes. This may force many low-income Los Angeles drivers to search for cheap liability only car insurance to keep the costs manageable. However, even the cost of minimum coverage can be double the national average of around $500.
Recent studies show that cities can be hard places to find affordable rates. Some motorists may be forced to drive without insurance due to economic hardship and necessity to drive to get to work or carry out a trade. This may cause problems for authorities and other motorists because the uninsured driver ratios can be really high in places like Detroit, Chicago and Los Angeles.
It Is Essential to Shop Around in Metropolitans
Results of a research carried out by Consumer Federation of America into car insurance quotes in the city zip codes are quite astounding. They mainly looked at quotes from top auto insurers and for good middle-aged drivers. Some companies came back with quotes over $3,000 for basic liability coverage when the applicants had no claims, traffic tickets and had reasonable credit history.
For the same applicants, other companies come around the premiums of $1000 to $1,500. Even those figures are very high for people on a tight budget. But it is unimaginable to ask $3,000 for a basic liability policy where a company could lose a maximum of around $30,000 to $50,000. It is not insurance but daylight robbery.
The only thing that can be said is that applicants do not have to buy it from such companies when they can get much lower prices somewhere else. Sad to say, many people do not realize they have options and they’d better shop around a bit more until they find a reasonably priced policy. Many people do buy after a first quote and end up paying a ton of money. It really is hard to find someone to blame for such a transaction. Motorists should never buy policies without proper auto insurance quotes comparison.
Problems in Some Expensive Zip Codes
There are some cities in the United States of America with nearly thirty percent uninsured drivers. It is impossible to blame only the drivers for not buying the state required minimum third-party liability. When the premiums are out of control it is hard to see a solution unless state authorities either put a cap on the rates charged or they offer alternative solutions.
Luckily for Los Angeles motorists from poorer backgrounds, the state of California offers low-cost auto insurance to key workers and low-income families. When people are expected to work at low wages to carry out crucial duties and services, at least they can expect similarly acceptable auto insurance premiums so that they can own and drive cars. If there are no such schemes to offer affordable policies the best low-income drivers can do is to shop around for the absolutely lowest quote they can get.
