Cars & Auto Insurance

For many working families, access to a car can be the difference between reaching a family-sustaining job and remaining mired in poverty. The first challenge is finding a car that is affordable and avoiding costly financing products and add-ons that drive up prices. But the challenges of finding an affordable vehicle, paying for insurance, and avoiding scams can make cars inaccessible to those who need them the most. Economic Action Maryland works with partners to make the car buying and auto insurance industries fair and affordable for all Maryland consumers.

One reason auto insurance is so costly is the use of “non-driving related factors” by insurance companies. These factors (such as gender, zip code, credit score, marital status, etc.) have nothing to do with how you drive, but have a lot to do with how much your insurance costs. Cumulatively, these factors mean that low-income people, people-of-color, and women pay more than their wealthy, white, male counterparts. We’ve written reports on how insurance companies drive up the cost of insurance for women, how zip code acts as a racial proxy for insurance companies, and the overall discrimination the use of non-driving related factors creates in Maryland.

Car purchases are one of the most expensive purchases individuals make. While there are good car dealers, others use deceptive tricks and traps to increase the cost of owning a car. Read our report Risky Business-Buying a Car in Maryland: Auto Fraud and Policy Choices.

Additional Reports:

• Issue Brief: Drivers Pay More Depending on Where They Live
• Issue Brief: Rate Me on How I Drive, Not Who I Am