Auto insurance fairness questioned by Consumer Federation of America

auto insurance premiums

The CFA performed research on premiums calculations which revealed unexpected results. The Consumer Federation of America (CFA) has used the profiles of two hypothetical drivers in order to receive quotes for auto insurance coverage from a number of different insurers, only to discover that the prices they were issued were not at all what they had expected. The two profiles involved female drivers who were 30 years old and who had the same road experience. These two profiles also lived within the same ZIP code and were seeking to receive…

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Auto insurance rates may be higher for safe drivers

Auto Insurance rates for safe drivers

Safe drivers may be facing significantly higher auto insurance rates There are many factors that go into determine auto insurance rates. Driving history, place of residence, credit score, and age can all be used to determine the price of a policy for a particular individual. Those with good driving records, typically known as safe drivers, are often considered to be charged the absolute lowest auto insurance rates possible. This is not the case, according to the Consumer Federation of America. The consumer advocacy group has released a new study that…

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Auto insurance takes many non-driving factors into account when calculating premiums

usage based insurance auto

Rates are determined by many things, not all of which occur behind the wheel. Auto insurance companies take many different factors into account when they calculate the premiums that will be paid every month by their policyholders, but not all of them have to do with driving. There are many additional elements such as occupation, education, and ZIP codes that can also be included. A consumer group is now taking action against some of these behaviors by asking New York insurance commissioners to limit the ability of insures to apply…

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Auto insurance pricing draws ire of consumer advocacy group

Auto Insurance Survey

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…

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Consumer group warns that insurers may be manipulating claims payouts

insurance industry report

Organization warns that software is allowing insurers to make reduced payments on injury claims The Consumer Federation of America has issued warnings this week concerning software that is often used by many of the largest insurance companies in the U.S. The organization, which works to establish a more consumer-friendly atmosphere in a number of different industries, claims that this insurance system is susceptible to manipulation, allowing insurance companies reduce their payouts concerning home injury claims. The organization has released a report detailing the shortfalls of the system and calling for…

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