Blumenberg Discusses Inequity of Flat Rate Auto Insurance

Evelyn Blumenberg, director of the Lewis Center for Regional Policy Studies and professor of urban planning, answers a question on WalletHub about the different types of rates charged to California drivers. She notes that lower-income drivers tend to benefit from pay-per-mile auto insurance because they travel fewer miles, on average. But, when charged a flat rate for insurance, “their rates are significantly higher per mile than those of higher-income drivers.” Blumenberg has also answered questions previously on the consumer-oriented website.


 

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