California auto insurance refunds expected as insurers pay back pandemic windfall profits

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Insurance Commissioner Ricardo Lara puts a stop to the added profits insurers are taking in from COVID-19 changes. Millions of drivers are likely to receive additional California auto insurance refunds following Insurance Commissioner Ricardo Lara’s recent action to require insurers to pay back pandemic windfall profits. The commissioner received applause from consumer advocate and economic ethics groups. The Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ) both applauded Lara for his decision to send pandemic windfall profits back to consumers through further California auto insurance refunds.…

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Consumer groups call for higher auto insurance rebates in the US

Auto insurance rebates - Driving

The Consumer Federation of America and Center for Economic Justice say insurers aren’t doing enough. The Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ) have recalculated their figures for insurers and say auto insurance rebates are not large enough. Some insurers have issued discounts and credits to policyholders in the face of COVID-19. However, the CFA and CEJ have concluded that some of the largest insurers have fallen short of fairness in the auto insurance rebates they’ve issued in the United States. Both consumer groups calculated…

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Auto insurance premium discount not in the cards for most low-mileage motorists

Auto Insurance Premium Discount - Low-mileage - car dashboard

Consumer Federation of America research found that drivers who don’t drive much don’t save. Most people would assume that drivers who don’t head out on the road much receive an auto insurance premium discount. However, the Consumer Federation of America (CFA) says otherwise. A recent CFA study shows motorists with low mileage aren’t enjoying car policy savings. The only state where an auto insurance premium discount is applied for low mileage drivers is California. The consumer advocacy group pointed out that the state legally requires insurers to provide the price…

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New coalition takes aims at health insurance mergers in the US

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Consumer groups form coalition to target mergers of health insurance providers Two consumer advocacy groups in the United States have formed a new coalition in order to create pressure of antitrust regulators concerning the merger of large insurance providers. These mergers would cut the number of for-profit health insurance companies from five to three, which may have a dramatic impact on consumers in terms of insurance options and costs. The coalition may be able to shed more light on the potential impact that mergers will have, encouraging state regulators to…

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Pennsylvania issues warning to the insurance industry

Pennsylvania Insurance Industry

State has warned insurers not to practice price optimization as it is unfairly discriminatory Pennsylvania has joined seven other states in warning the insurance industry against practicing “price optimization,” a technique that insurers often use to raise premiums for those they deem unlikely to search for better deals. The Consumer Federation of America notes that this practice is unfair and illegal, as it often makes use of socio-economic information that insurers are banned from using to price coverage in some states. The organization suggests that this pricing practice is a…

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Consumer group may have uncovered an auto insurance pricing scheme

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Advocacy groups claims to have found information regarding a pricing scheme within the auto insurance sector The Consumer Federation of America, a prominent consumer advocacy group, has raised the alarm on what it believes to be a pricing scheme in the auto insurance sector. The organization suggests that insurers are employing a practice called “price optimization” to drive up insurance premiums for drivers. The Consumer Federation of America claims to have uncovered this practice when investigating rate filings from some of the country’s largest auto insurance companies. Insurers may be…

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Auto insurance is too expensive for low income drivers, study

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Research conducted by the Consumer Federation of America has shown that this coverage is tough to afford. A recent report has been issued by the Consumer Federation of America (CFA), which reveals that the vast majority of Americans (76 percent), feel that minimum liability auto insurance coverage for under $500 per year is a fair amount to pay, and 40 percent believe that drivers should have to pay an amount under $250 per year. That said, the five largest vehicle insurance companies in the United States do not offer that…

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