Study on the Affordability of Personal Automobile Insurance


Table of Contents
Glossary .......................................................................................................................................... ii

I. Introduction and Summary of Findings .............................................................................. 1

II. Why Personal Auto Insurance?........................................................................................... 3

III. Auto Insurance and State Requirements – the Basics......................................................... 4

IV. Auto Insurance Availability and Uninsured Drivers .......................................................... 6

Figure 1: Number of Personal Auto Insurers in Each State.................................................... 6

Figure 2: Percentage of Uninsured Drivers by State .............................................................. 7

V. Factors Affecting Affordability .......................................................................................... 7

VI. Calculating the Affordability Index .................................................................................... 8

A. Who Are Affected Persons?................................................................................................ 8

Figure 3: Concentration of Affected Persons as Percentage of U.S. Population .................... 9

B. Defining Affordability ........................................................................................................ 9

C. How to Calculate the Affordability Index ........................................................................ 10

D. Data Sources and Limitations ........................................................................................... 10

VII. The Affordability of Personal Auto Insurance for Affected Persons:

Findings and Observations................................................................................................ 11

A. Findings and Summary of Analysis .................................................................................. 11

Figure 4: AP ZIP Codes and Affordability Index Values Above Two Percent by State ...... 12

Figure 5: Financial Responsibility Limits, Based on Median Family Income ..................... 13

Figure 6: Financial Responsibility Limits, Based on Minority Concentration ..................... 14

B. Illustrations ....................................................................................................................... 14

1. California .................................................................................................................... 14

Figure 7: California ZIP Code Analysis ............................................................................... 15

2. Florida......................................................................................................................... 15

Figure 8: Florida ZIP Code Analysis .................................................................................... 16

3. Illinois ......................................................................................................................... 16

Figure 9: Illinois ZIP Code Analysis .................................................................................... 17

4. New York ................................................................................................................... 17

Figure 10: New York ZIP Code Analysis ............................................................................. 18

VIII. Next Steps ......................................................................................................................... 19

IX. Conclusion ........................................................................................................................ 19







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