Handicap Permit: Impact On Auto Insurance Rates And Coverage

In the United States, the Americans with Disabilities Act (ADA) prohibits auto insurance companies from charging higher rates to drivers with disabilities or denying them coverage based solely on their disability status. However, insurance companies may charge higher premiums if the individual's medical condition is considered a safety risk or if the vehicle has been modified to accommodate their disability, as these factors can increase the cost of insurance. It is important to note that disability parking permits are tied to the individual and not the vehicle, and misuse of these permits can result in fines and other penalties.

Does a handicap permit increase insurance costs?

In the US, each state has its own criteria for who qualifies as a disabled driver. The core group of qualifying conditions include:

• An inability to walk 200 feet without needing to rest
• An inability to walk without the aid of a wheelchair, cane, crutch, prosthetic device, or another person
• A heart condition classified as Class III or IV by the American Heart Association
• The use of a portable oxygen tank
• A neurological, orthopedic, or arthritic condition that curtails mobility

In Canada, the eligibility criteria vary between provinces. In Ontario, for example, people with the following conditions can obtain an accessibility permit:

• Trouble with walking or mobility issues
• The need for assistive devices
• Lung diseases that cause breathing difficulties or require portable oxygen
• Cardiovascular disease that diminishes specific functional capacities
• Poor vision

The Americans with Disabilities Act (ADA) prohibits auto insurance companies from charging higher premiums to disabled people. The Act, in practice, prohibits "auto insurance companies from raising insurance rates of the disabled, denying them coverage, or giving them higher insurance quotes". Similarly, the Canadian Charter of Rights and Freedoms guarantees that people with disabilities have a right to "equal protection and equal benefit of the law without discrimination based on…mental or physical disability".

However, despite these anti-discrimination laws, disabled drivers may still pay higher insurance rates in practice. This is because they may require vehicle modifications, such as:

• Reduced-effort braking systems
• Pedal and steering wheel extensions
• Left-foot accelerators
• Raised roofs and/or dropped floors
• Access ramps
• Wheelchair lifts
• Siren detectors
• Wheelchair-adjustable seats and seatbelts

These modifications are considered by insurers to be risk factors, which can increase insurance premiums. Additionally, certain medical conditions, such as epilepsy, are considered to increase driver safety risk and may also result in higher insurance costs.

Disabled drivers may also need to pay for disabled parking permit fees and sometimes even disabled parking space installation near their property, adding to their overall vehicle running costs.

Does a disability affect car insurance rates?

In the United States, the Americans with Disabilities Act (ADA) makes it illegal for insurance companies to charge drivers with disabilities higher rates for car insurance coverage based solely on their disability. However, insurance companies may charge higher rates if the disability affects the policyholder's ability to drive or if the vehicle has been modified to accommodate the disability.

Risk Factors

If a disability is associated with a medical condition that could impact a person's ability to drive safely, insurance companies may increase the monthly premium or deny coverage altogether. Conditions such as epilepsy, unmanaged diabetes, or fainting spells could pose an extra risk on the road, and insurers can raise rates to account for this increased risk.

Vehicle Modifications

Modifications made to a vehicle to accommodate a disability, such as wheelchair lifts, ramps, or custom equipment, can also result in higher insurance rates. These modifications often increase the value and repair cost of the vehicle, which is considered a risk factor by insurance companies. Custom equipment protection coverage, which covers the cost of modifications, typically costs around 10% of the total value of the modifications.

Other Factors Affecting Car Insurance Rates

It is important to note that insurance rates are determined by various factors beyond disability, including driving history, age, gender, marital status, location, insurance history, mileage, vehicle type, and credit score. Insurance companies use these factors to assess risk and set premiums accordingly.

Additional Coverage Options

Individuals with disabilities may also consider additional coverage options, such as roadside assistance, mobility car insurance coverage, or special equipment coverage, to accommodate their specific needs. These add-ons can provide peace of mind and ensure that any modifications or specialised equipment are properly covered in the event of an accident.

Shopping for Insurance

Individuals with disabilities should shop around and compare quotes from multiple insurance companies to find the best rates and coverage options. It is important to disclose any medical conditions and vehicle modifications to the insurance company to ensure compliance with legal requirements and avoid issues with coverage in the event of a claim.

What is disability car insurance?

There is no such thing as a disability car insurance policy. The Americans with Disabilities Act (ADA) prevents insurance companies from charging higher rates to disabled drivers and passengers based solely on their disability. However, disabled drivers may pay more because of the safety risks associated with certain medical conditions and the higher costs of insuring mobility-enhanced or disability-adapted vehicles.

Disabled drivers will receive the same car insurance policies as other drivers. However, they can choose add-on options such as mobility car insurance coverage, which covers damage to specialised vehicles or custom equipment.

Disabled drivers and passengers include people with a range of conditions, including amputees, paraplegics, those with hearing or vision loss, and those with mental illness or neurological conditions. Living with a disability does not necessarily mean a driver is at higher risk of an accident. However, there are some medical conditions that are considered driving impairments that can affect safety and require medical approval for drivers to be legally allowed on the road.

If you have a disability or serious medical condition, it is important to discuss with your doctor how it may affect your ability to drive. Doing so will help ensure your safety and the safety of other drivers, and identify any potential safety risks that could affect your car insurance rates.

What are handicap placards?

Handicap placards, also known as disabled parking permits, are blue cards hung from the rearview mirror, indicating that a driver or passenger with a disability is in the car. This allows people with reduced mobility to park more easily and access shops and public spaces more conveniently. Any disability that affects mobility—visible or not—qualifies someone for a handicap placard.

Common medical conditions that qualify for a handicap placard include:

• Any disease that significantly impairs the ability to walk or use legs, such as cerebral palsy, arthritis, asthma, lung disease, or heart disease.
• Loss or limited use of limbs, including legs or hands, covering amputations and paraplegia.
• Use of assistive mobility devices like wheelchairs, canes, or crutches.
• Neurological diseases like epilepsy or mental health illnesses.
• Vision impairments like low vision or partial sightedness.

The process of obtaining a handicap placard varies from state to state, so it's best to check with the Department of Motor Vehicles (DMV). Some states may not require disability verification from a medical professional, and fees for obtaining a placard are generally low, ranging from free to $20.

There are different types of handicap placards:

• Permanent Handicap Placard: Some states do not charge a fee for this type of placard, which is typically valid for 2 to 10 years. Chronic illnesses like lung disease or visual impairments often qualify as permanent disabilities.
• Temporary Handicap Placard: The application fee for this type of placard usually ranges from $0 to $20, and it is valid for about six months. Temporary placards are suitable for individuals with temporary disabilities requiring assistive devices like wheelchairs, casts, or crutches.
• Disabled Veteran Placard: This placard is specifically for US military veterans with severe disabilities, and it is typically valid for 2 to 10 years.

It's important to note that handicap placards can be used when the disabled individual is a passenger in someone else's car, but they cannot be loaned to others. Both temporary and permanent placards have expiration dates and must be renewed.

What are the anti-discrimination laws?

In the United States, the Americans with Disabilities Act (ADA) makes it illegal for insurance companies to charge drivers with disabilities higher car insurance rates solely based on their disability status. The ADA provides significant protections to individuals with disabilities, primarily to protect them from discrimination.

However, there are some ways that insurers can legally increase the cost of insurance policies for people with disabilities, as long as they are associated with actual risks. For instance, if a person's disability has the potential to impact their ability to drive, it could result in higher premiums or even a denial of coverage. Additionally, vehicle modifications for better accessibility, such as wheelchair lifts and ramps, may require custom equipment protection coverage, which typically costs 10% of the total value of the modifications.

Other anti-discrimination laws in the context of auto insurance include the following:

• The Prohibit Auto Insurance Discrimination Act, introduced by Rep. Bonnie Watson Coleman in 2019, aims to prohibit private passenger automobile insurers from using certain income proxies, such as education level, employment status, homeownership status, and credit score, to determine insurance rates and eligibility.
• The Preventing Credit Score Discrimination in Auto Insurance Act, introduced by Rep. Rashida Tlaib, is a companion bill to the PAID Act.
• State-level legislation, such as the Gender Non-Discrimination in Automobile Insurance Rating Regulation in California, prohibits the use of gender in insurance ratings.
• The National Association of Insurance Commissioners (NAIC) has formed the Special Committee on Race and Insurance to study and address car insurance discrimination.
• The Consumer Federation of America (CFA) and Consumer Reports (CR) have applauded insurance reform legislation in Colorado that targets practices disproportionately harming communities of color or people based on their sex, sexual orientation, or gender identity. This law requires insurers to demonstrate that their use of external data and algorithms does not discriminate based on these protected classes.

It is important to note that anti-discrimination laws in auto insurance aim to protect individuals from unfair practices and ensure equal access to insurance products and services.

Frequently asked questions