Consumer watchdog sideswipes auto insurers over pricing

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A national consumer watchdog group is urging state insurance regulators to dig into auto insurers charging them with pricing the poor out of their cars.

Consumer Federation of America sent letters and a press release out on Wednesday saying more insurers are adopting a price optimization strategy which charges people the most they are willing to pay for insurance rather than using more traditional calculations to set policy rates. Those rates were based on things like, risk of accidents, cost of repairs and replacement.

Here’s a link to the letter http://www.consumerfed.org/pdfs/price-optimization-letter-state-auto-insurance-commissioners.pdf

 

Rob Varnon

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