An insurance company will pay for the auto insurance you purchase if you have a pre-existing condition, which can affect the value of the policy, according to a new study from Consumer Reports.
Consumers who bought an auto policy before age 25 had a 3 percent higher risk of having their policy lapse, the researchers found.
The insurance companies are not required to offer a guarantee that the policy will cover the loss of the car.
The study was based on data from 1,400 people who purchased policies between 2007 and 2015.
In the survey, the insurance companies asked for their car insurance coverage to include a clause that said, “If I am in an accident or have any medical conditions that make it impossible for me to drive safely, I will have a guaranteed coverage in the event of a collision, or if I suffer an accident that results in serious injury or death, I may be able to purchase a full coverage policy through the insurance company for my coverage in case of an accident.”
Those who didn’t have a health condition that would prevent them from driving safely also had a higher risk for having their insurance lapse.
Consumers had higher premiums for policies with a “deferral clause,” which required them to pay for their own auto insurance before they were covered, the study said.
“While consumers may not necessarily want a guarantee, they can expect to pay a significant premium for their auto insurance,” said Mary Beth Miller, senior director of research at Consumer Reports Insurance Research Center.
The research comes as the auto industry is trying to attract younger consumers.
Last year, auto insurance rates increased, driven in part by a wave of new driverless cars that can be controlled remotely and require drivers to wear helmets.
The rise in the auto coverage market has been accompanied by higher rates, particularly for people with pre-eclampsia, the medical condition that causes excessive blood pressure and can lead to stroke.
That can result in higher premiums than people who have never had a pre, or non, pre-pregnancy high blood pressure.
Insurance companies are seeking to keep prices down, but many say they can’t.
Some insurance companies have already pulled out of the market, but others have been selling policies on the individual market, which covers people with a pre-, pre- and post-pregnant condition.
A spokesperson for Allstate, the country’s largest insurance company, told ABC News in a statement that its policyholders will continue to be covered if they have a preexisting condition.
“Allstate does not sell health insurance on its policies,” the spokesperson said.
In 2015, the Centers for Disease Control and Prevention reported that about 20 percent of American adults with pre-, post- and preexistent conditions could not drive safely.