Consumer group says many auto insurance rates unfair

https://www.consumeraffairs.com/news/consumer-group-says-many-auto-insurance-rates-unfair-052915.html

The fact is, insurance companies take many things into consideration when setting individual rates. The Consumer Federation of America (CFA) says some of them aren’t fair to consumers and the group will lobby for reform.

CFA has seized on a new report by Bankrate.com, illustrating how living in a particular ZIP code can affect what you pay for auto insurance. The report notes you can get vastly different quotes from the same insurance company at two addresses a relatively short distance apart but in different ZIP codes…

CFA says it has researched the cost of auto insurance and its impact on low to moderate income consumers. It concludes that in many low-income communities across the country, good drivers have access to few or no policies that cost less than $500 per year, which meets the standard of a reasonable price for basic insurance coverage…

Price optimization is another way insurance companies set rates, and it is a practice that California is also targeting. Price optimization is a technique by which insurance companies measure the shopping habits of its customers in order to set individual premiums as high as possible regardless of a customer’s risk profile…

Did you know that married people get lower rates than singles?  Because the insurance industry has decided that a driver who is married is less of a risk than one who is single.  Not only do married people get more tax deductions, they pay less for car insurance.