September 2014

The High Price of Mandatory Auto Insurance for Lower Income 

Households: Premium Price Data for 50 Urban Regions 

The report can be downloaded here: http://bit.ly/YCQxC1

The press release is available here: http://consumerfed.org/news/824

Figure 1. Public Views of a Fair Annual Cost of Mandatory Liability Coverage 

Q: “For, say, a 30-year old woman with a modest income and ten years of driving experience with no 

accidents or moving violations, what do you think is a fair annual cost for the required minimum level of 

this liability insurance?” (+/- 5%)

Source: ORC International

Figure 2. About the driver profile used in this study

Under $500 

(76%) $500 and 

over (19%)

About our Driver:

30 year old single female

 Licensed 14 years

 No lapse in coverage

 No accidents, moving violations, or license

 suspensions

 High school diploma

 Employed in clerical profession

 Renter for 10 years

 No affinity group discounts

 Fair credit rating

About our Driver:

30 year old single female

 Licensed 14 years

 No lapse in coverage

 No accidents, moving violations, or license

suspensions

 High school diploma

 Employed in clerical profession

Renter for 10 years

About Her Vehicle:

2000 Honda Civic EX

Drives to work 10 miles one way, 5 days/week

10,000 total miles annually

About Her Coverage:

Minimum coverage required by state

Under $250 

(40%)

$250 to $499 

(36%)

$500 to $749 

(10%)

$750 to $1,000 

(4%)

> $1,000 (5%)

Don't Know 

(5%)
September 2014

Figure 3. Distribution of ZIP Code Minimum Quotes from 5 Largest Insurers in the 50 Largest 

CBSAs with LMI ZIP Codes (Percent)

ZIP Code Income 

(Quintile)

Less than 

$500

$500 to 

$749

$750 to 

$999

$1,000 or 

more

ZIP Codes (#)

≤ $41,515 (1-2) 64.9% 25.0% 7.7% 2.5% 1,377 

$41,516-$104,624 (3-4) 73.7% 23.1% 3.1% 0.1% 5,853 

>104,624 (5) 73.6% 26.3% 0.1% 0.0% 681 

No Data 59.8% 37.3% 2.3% 0.6% 311 

Grand Total 71.7% 24.2% 3.6% 0.5% 8,222

Source: CFA analysis of data provided by Quadrant Information Services, US Census 

Figure 4. Distribution of ZIP Code Average Quotes from 5 Largest Insurers in the 50 Largest 

CBSAs with LMI ZIP Codes (Percent)

ZIP Code Income

(quintile) < $500 $500 to $749

$750 to 

$999

$1,000 to 

$1,999

$2,000 to 

$2,999

$3,000 or 

greater

ZIP Codes 

(#)

≤ $41,515 (1-2) 13.0% 42.3% 19.2% 16.8% 6.2% 2.5% 1,377

$41,516-$104,624 (3-4) 19.1% 40.5% 18.9% 18.9% 2.6% 0.2% 5,853

>104,624 (5) 16.0% 33.9% 21.9% 27.9% 0.3% 0.0% 681

No Data 10.9% 33.4% 23.8% 27.3% 2.3% 2.3% 311

Grand Total 17.5% 40.0% 19.4% 19.6% 3.0% 0.6% 8,222

Source: CFA analysis of data provided by Quadrant Information

Figure 5. Distribution of ZIP Code Maximum Quotes from 5 Largest Insurers in the 50 Largest 

CBSAs with LMI ZIP Codes (Percent)

ZIP Code Income < $500 $500 to 

$749

$750 to 

$999

$1,000 to 

$1,999

$2,000 to 

$2,999

$3,000 or 

greater ZIP Codes (#)

≤ $41,515 (1-2) 0.4% 14.7% 31.6% 32.8% 6.5% 14.0% 1,377

$41,516-$104,624 (3-4) 0.3% 25.1% 27.2% 30.6% 9.0% 7.8% 5,853

>104,624 (5) 0.7% 21.7% 17.8% 39.9% 13.8% 6.0% 681

No Data 0.6% 13.2% 19.6% 37.3% 6.4% 22.8% 311

Grand Total 0.3% 22.6% 26.9% 32.0% 8.9% 9.3% 8,222

Source: CFA analysis of data provided by Quadrant Information
September 2014

Figure 6. The lowest annual auto insurance liability premiums charged by major auto insurers to 

good drivers living in LMI ZIP Codes in 50 largest CBSAs with LMI ZIP Codes 

CBSA

LMI ZIP 

Codes with 

a min. 

premium 

<$500

LMI 

ZIP 

Codes

Percent of 

ZIP Codes 

with min. 

premium 

<$500

2011 

Population 

Population 

Rank

Miami-Fort Lauderdale-Pompano Beach, FL 0 51 0% 5,526,089 7

Detroit-Warren-Livonia, MI 0 43 0% 4,320,982 11

Minneapolis-St. Paul-Bloomington, MN-WI 0 10 0% 3,259,654 16

Tampa-St. Petersburg-Clearwater, FL 0 42 0% 2,770,114 19

Baltimore-Towson, MD 0 10 0% 2,697,421 20

Orlando-Kissimmee-Sanford, FL 0 22 0% 2,113,650 26

Jacksonville, FL 0 13 0% 1,334,688 39

Hartford-West Hartford-East Hartford, CT 0 7 0% 1,207,636 44

New Orleans-Metairie-Kenner, LA 0 27 0% 1,139,643 45

New York-N. New Jersey-Long Island, NY-NJ-PA 5 76 7% 18,796,078 1

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 5 36 14% 5,938,918 5

Seattle-Tacoma-Bellevue, WA 2 13 15% 3,404,443 15

Las Vegas-Paradise, NV 3 13 23% 1,928,695 30

Louisville/Jefferson County, KY-IN 8 34 24% 1,273,988 41

Denver-Aurora-Broomfield, CO 5 16 31% 2,509,230 21

Oklahoma City, OK 14 35 40% 1,238,050 43

Los Angeles-Long Beach-Santa Ana, CA* 21 52 40% 12,777,695 2

Portland-Vancouver-Hillsboro, OR-WA 5 10 50% 2,202,583 23

Providence-New Bedford-Fall River, RI-MA 9 14 64% 1,601,264 36

Houston-Sugar Land-Baytown, TX 38 58 66% 5,836,814 6

Sacramento--Arden-Arcade--Roseville, CA* 10 13 77% 2,130,801 24

Cincinnati-Middletown, OH-KY-IN 28 35 80% 2,120,924 25

St. Louis, MO-IL 55 61 90% 2,801,982 18

San Francisco-Oakland-Fremont, CA* 11 12 92% 4,292,964 12

Chicago-Joliet-Naperville, IL-IN-WI 43 43 100% 9,425,706 3

Dallas-Fort Worth-Arlington, TX 54 54 100% 6,280,597 4

Washington-Arlington-Alexandria, DC-VA-MD-WV 4 4 100% 5,503,801 8

Atlanta-Sandy Springs-Marietta, GA 35 35 100% 5,213,854 9

Boston-Cambridge-Quincy, MA-NH 13 13 100% 4,521,737 10

Riverside-San Bernardino-Ontario, CA* 33 33 100% 4,178,296 13

Phoenix-Mesa-Glendale, AZ 36 36 100% 4,150,083 14

San Diego-Carlsbad-San Marcos, CA* 8 8 100% 3,060,849 17

Pittsburgh, PA 82 82 100% 2,357,769 22

San Antonio-New Braunfels, TX 35 35 100% 2,105,462 27

Cleveland-Elyria-Mentor, OH 24 24 100% 2,080,318 28

Kansas City, MO-KS 46 46 100% 2,018,661 29

Columbus, OH 21 21 100% 1,819,568 31

Indianapolis-Carmel, IN 17 17 100% 1,739,071 32

Charlotte-Gastonia-Rock Hill, NC-SC 20 20 100% 1,729,955 33

Austin-Round Rock-San Marcos, TX 14 14 100% 1,681,167 34

Virginia Beach-Norfolk-Newport News, VA-NC 16 16 100% 1,666,758 35

Nashville-Davidson--Murfreesboro--Franklin, TN 24 24 100% 1,569,470 37

Milwaukee-Waukesha-West Allis, WI 13 13 100% 1,547,501 38

Memphis, TN-MS-AR 32 32 100% 1,309,692 40

Richmond, VA 14 14 100% 1,248,271 42