A study on factors causing certain consumers to be underserved in auto insurance.

摘要

A number of Los Angeles County communities are underserved by the auto insurance industry as reported by the California Department of Insurance. This means that many drivers go uninsured or underinsured. Most of these drivers are low-income and are predominantly African-American and Latino. As a public policy issue, there was a need to examine why certain consumers are underserved, and to suggest ways to address this issue.; The purpose of this study was to measure the level of consumer knowledge about auto insurance in the underserved community, and to assess the role insurance companies play that affects the underserved community. Two surveys served as data gathering instruments for this descriptive study.; The first, a survey of consumer knowledge about auto insurance, was administered to the underserved community and to the general population. The instrument was designed to elicit respondents' demographic background and to measure the level of their knowledge about auto insurance. This survey's analysis unit was an individual participating in a job training program located in either an underserved community or in an area outside of the underserved community, referred to as the general population. The survey's population consisted of 100 participants, 50 in a program located in an underserved community, and 50 in a program located in the general population area. Survey items were identified and developed based upon a literature review in the areas of demographics and consumer education and literacy.; The analysis unit for the second survey was an auto insurance company Chief Executive Officer (CEO). The population of this survey was five CEOs of major insurance companies selling auto insurance. The survey instrument was designed to obtain information about those auto insurance companies' programs and services directed toward the underserved community and the general population.; The recommendations based upon the findings of this study can assist the California Department of Insurance and other stakeholders involved in public policy to effectively address the issue of the underserved in auto insurance.