Hefty Car Insurance Rates Take Toll on Low Income Minnesotans

(Adobe Stock via Minnesota News Connection)

(By Mike Moen. Minnesota News Connection) – Minnesotans looking at their homeowner and car insurance statements lately might feel a sense of dread as premiums spike. For low-income vehicle owners, consumer watchdogs highlight how painful the rising costs can be.

Industry data show Minnesota has seen some of the fastest growing premium hikes for both home and car insurance. Analysts say it’s due in part to climate change producing heavier storm damage.

Anna Odegaard, coalition director with Minnesotans for Consumer Financial Protection, said that makes it hard for low-income drivers to afford their monthly insurance bill.

“There are socio-economic factors,” she said, “like credit score[s], marital status, education level and occupation – often are a much bigger factor in how much you’re charged for auto insurance than your driving record.”

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