Survey shows consumers believe auto insurance pricing is unfair
The Consumer Federation of America, a consumer advocacy group, has released the results of a survey it conducted last week concerning how people feel about their auto insurance coverage. The group suggests that, according to the survey, many consumers feel that they are facing unfair pricing practices concerning their auto insurance coverage. These consumers claim that their policies are being prices based on information concerning their occupation, education level, and marital status.
Group finds that certain factors hold significant influence over pricing
In an effort to examine these claims, the advocacy group began looking online for auto insurance quotes. The group found that changing the information it provided concerning factors such as education and marital status had a drastic influence on the overall cost of an auto insurance policy. The Consumer Federation of America notes that insurance companies are permitted by most regulations to use such factors as a way to price policies, but the group argues the ethics involved in doing so.
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Consumer group rallies campaign for reforms
The advocacy group suggests that a person’s job, education level, or marital status do not have any bearing on their driving ability. The Consumer Federation of America is now embarking on a campaign to encourage states to make changes to their auto insurance regulations. The group hopes that these changes will make pricing auto insurance policies a more ethical procedure and help protect consumers from what is being perceived as a misappropriation of information.
Insurers note other factors contribute to calculating risk
Insurance groups are rebuking the survey and the Consumer Federation of America’s campaign, claiming that the information contained within the survey is wrong. Auto insurance is, typically, priced based on the risk a particular consumer represents and factors such as education level, marital status, and occupation are used to help calculate these risks. Other factors, such as age, gender, and credit history are also strong factors that determine the cost of auto insurance.