Discrimination in Car Insurance And Your Rights Against It

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Law requires that every car insurance applicant is treated with equality as it is a must to have cars covered under insurance before you bring it on the road. Universally, car owners and drivers are protected against discrimination and here are the details you will need to guard yourself from. A car insurance company cannot deny, refuse to renew, limit, or charge you extra based on reasons like race, color, religion, or nationality.

Also a car insurance company cannot deny, refuse to renew, limit, or charge you more because of your age, gender, marital status, geographic location, disability, either partial or complete, unless such a refusal, limitation, or higher charge is "based on measured undertakings or realistic principles." If the insurance company were to discriminate against you, they would have to show cognizable evidence that you are a greater risk in comparison to others. This also includes that an insurer cannot refuse to renew your policy when some family member attains driving age.

This is not all. It is unlawful for a company to distinguish between individuals posing the same rate of risk or discriminate class in its rates, terms of policy, benefits, or claim settlements unless such refusals or discrimination is "based on sound and actuarial principles."

However, these are fundamental in nature but deep down, the law has stretched its arms very far with a view to make sure the car insurance is available to everyone in all fairness. This includes points like past driving history, lack of driving experience or business.

What are your rights?

The law provides for suing an insurance company for failing to follow anti discrimination which also includes refusal of insurance. To make the procedure for filing a suit, the law allows you to file a suit in your district court. On your part, make sure that your litigation is in good faith, and is based on solid grounds. In case the court finds that the suit is baseless and filed for harassing the car insurance company, you will probably be ordered to pay the legal expenses to the company.

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