Is car insurance more expensive for immigrants?
In the states where undocumented immigrants can get driver’s licenses (Hawaii, California, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, New York, Vermont, and Washington, D.C.),5 car insurance may or may not be more expensive for immigrants, depending on when they got their driver’s licenses. That’s because one factor that affects the cost of car insurance is driving records. If the immigrants are recent, they may not have much of a driving record to go off of, which could increase premiums.
David Reischer, an immigration lawyer at LegalAdvice.com, explained that “auto insurance carriers will charge more if the person has not had a U.S. license for at least three years because the driving history is less known. This increased premium is not discrimination against an undocumented immigrant, but rather the insurance company is uncertain whether the driver is a potentially safe or risky driver that is prone to accidents.”
In conclusion, undocumented immigrants who have had their driver’s licenses for at least three years may get lower rates, but undocumented immigrants who have had their licenses for less than three years will see higher rates.