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Consumer Group Assails Auto Insurers For Pricing On Marital Status, Education, Occupation

Hartford Courant -- The Consumer Federation of America, a national consumer group, said last week it surveyed auto-insurance customers and learned that they think it's unfair to price car coverage based on factors such as occupation, education level and marital status.

Looking for price quotes on insurance company websites, the group found that changing variables made a difference in annual premium of $3,446 for a potential GEICO customer in Miami, Fla., for example.

"Insurers are permitted to use factors such as education and occupation in setting prices even though these factors have nothing to do with driving and discriminate against lower-income drivers," said Stephen Brobeck, executive director of the consumer federation.

The group is mounting a campaign against auto insurers in an effort to change

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Submitted Sep 30, 2012 By: angel4me

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LilRedWagonIN Champion Author Indiana Posts:7,771 Points:1,554,160 Joined:Oct 2008	Message Posted: Oct 1, 2012 12:01:59 PM Ignore LilRedWagonIN Report Abuse And the CFA can claim crack heads and alcoholics should not be discriminated against either. 90-year-olds or 16-year-olds. IQs of 135 and IQs of 85.
darkform Veteran Author Illinois Posts:352 Points:368,010 Joined:May 2011	Message Posted: Oct 1, 2012 10:44:13 AM Ignore darkform Report Abuse If those do not affect whether a person gets in an accident or gets a ticket then they should not be considered.
crep1291 Champion Author Ottawa Posts:2,578 Points:480,900 Joined:Dec 2010	Message Posted: Oct 1, 2012 10:29:47 AM Ignore crep1291 Report Abuse Wow. At that price, a university degree, even if you don't work in your field, sounds like an excellent investment.
FPLREP Champion Author Virginia Posts:8,256 Points:2,447,275 Joined:Oct 2005	Message Posted: Oct 1, 2012 9:34:44 AM Ignore FPLREP Report Abuse They wouldn't do it if the risk is higher than the payback. Insurance companies invest millions to find the "risk' factors. It is like life insurance, they are betting that ytou will live long enough for your premium to to cover your pay-out, and you are betting that it will not!
MAC48 Champion Author Dallas Posts:1,546 Points:765,945 Joined:Dec 2006	Message Posted: Sep 30, 2012 9:42:16 PM Ignore MAC48 Report Abuse The position taken by the Consumer Federation of America is just more class warfare. This is another attempt to make those who have attained a higher degree of success pay for those who will not make the same efforts. If insurance companies are using sound actuarial methods and criteria that pass review by the state insurance commission's own actuaries, there is absolutely nothing wrong the insurance companies using these methods or criteria.
newman26 Veteran Author Milwaukee Posts:314 Points:1,451,505 Joined:Jun 2006	Message Posted: Sep 30, 2012 8:10:23 PM Ignore newman26 Report Abuse Not all insurance companines use the same criteria. This is why it pays to shop around and find the deal what is best for you.
alterman156 Champion Author New York Posts:7,480 Points:1,556,550 Joined:Dec 2008	Message Posted: Sep 30, 2012 7:59:03 PM Ignore alterman156 Report Abuse No two people are alike.
SUNOIL Champion Author Toledo Posts:5,240 Points:1,925,030 Joined:Jul 2007	Message Posted: Sep 30, 2012 7:11:38 PM Ignore SUNOIL Report Abuse We are not all alike
07skydriver Champion Author Ohio Posts:3,255 Points:982,130 Joined:Feb 2009	Message Posted: Sep 30, 2012 6:44:26 PM Ignore 07skydriver Report Abuse Just stay home.
listerone Champion Author Boston Posts:3,375 Points:877,790 Joined:Aug 2008	Message Posted: Sep 30, 2012 6:34:16 PM Ignore listerone Report Abuse "Just because the insurance companies can prove some coorelation doesn't mean they should use it." If you were a member of one or more of the "preferred" groups you'd feel differently when your premium bills arrived.
Sneakers55 Champion Author Houston Posts:51,285 Points:2,142,950 Joined:Nov 2005	Message Posted: Sep 30, 2012 6:33:41 PM Ignore Sneakers55 Report Abuse On Sep 30, 2012 4:02:09 PM badbonita wrote: >Just because the insurance companies can prove some coorelation >doesn't mean they should use it. I feel the other way: if they can find a correlation, it should figure into their rate-setting. After all, they barely make money on property and casualty insurance the way it stands. Lots of hot competition out there and if something can give them a leg up, so be it.
listerone Champion Author Boston Posts:3,375 Points:877,790 Joined:Aug 2008	Message Posted: Sep 30, 2012 6:27:55 PM Ignore listerone Report Abuse Statistics over time have shown that the married file fewer and/or smaller claims than do the unmarried.....college grads the same vs non-grads.....accountants the same vs gas station clerks. For example...
qwerty17 Champion Author New Jersey Posts:3,645 Points:1,116,550 Joined:Oct 2009	Message Posted: Sep 30, 2012 5:14:10 PM Ignore qwerty17 Report Abuse actuaries are evil.
badbonita Champion Author Syracuse Posts:6,219 Points:1,352,735 Joined:Jul 2008	Message Posted: Sep 30, 2012 5:02:09 PM Ignore badbonita Report Abuse Just because the insurance companies can prove some coorelation doesn't mean they should use it.
Sneakers55 Champion Author Houston Posts:51,285 Points:2,142,950 Joined:Nov 2005	Message Posted: Sep 30, 2012 4:30:24 PM Ignore Sneakers55 Report Abuse On Sep 30, 2012 1:57:28 PM, Discovery02 wrote: >The search for reasons to charge more and more >will never stop. Oh, it's such a radical step to have the insurance companies determine factors that indicate the cost of underwriting the risk.
Sneakers55 Champion Author Houston Posts:51,285 Points:2,142,950 Joined:Nov 2005	Message Posted: Sep 30, 2012 4:27:57 PM Ignore Sneakers55 Report Abuse On Sep 30, 2012 9:06:39 AM, DerHahn wrote: >never understood what credit rating had to do with driving ability. this is a total sham. From what I can tell, the insurance score is calculated totally differently than the other scores. The insurance companies can demonstrate a strong correlation but not why it occurs.
Discovery02 Champion Author Colorado Springs Posts:2,550 Points:309,690 Joined:May 2012	Message Posted: Sep 30, 2012 2:57:28 PM Ignore Discovery02 Report Abuse The search for reasons to charge more and more will never stop.
Palantas All-Star Author Indianapolis Posts:803 Points:413,095 Joined:Sep 2011	Message Posted: Sep 30, 2012 2:52:39 PM Ignore Palantas Report Abuse Insurance is a scam.
bojiway1 Champion Author Minnesota Posts:2,044 Points:478,060 Joined:Dec 2011	Message Posted: Sep 30, 2012 12:35:02 PM Ignore bojiway1 Report Abuse I can understand why they do it
Ply440GTX All-Star Author Texas Posts:949 Points:309,730 Joined:Feb 2009	Message Posted: Sep 30, 2012 12:31:50 PM Ignore Ply440GTX Report Abuse Several years ago when married BUT unemployed I was shopping around for car insurance and a Geico rep. told me that, even though I was in my mid-30s and had a bulletproof driving record, that I was a "liability" due to my "status." ...and so are teenagers with driver's licenses. Needless to say I've never bothered Geico again.
MontanaMac Champion Author Washington Posts:1,736 Points:410,050 Joined:May 2011	Message Posted: Sep 30, 2012 11:54:17 AM Ignore MontanaMac Report Abuse Won't looking at the actuarial data be interesting.
BburgCW Champion Author Virginia Posts:2,686 Points:1,178,880 Joined:Jun 2009	Message Posted: Sep 30, 2012 11:38:51 AM Ignore BburgCW Report Abuse If there's a correlation between these factors and likelihood of an accident, I can understand why insurance companies discriminate. HOWEVER, if someone who starts out in a "high-risk" category goes without an accident or ticket for a year, say, then the insurance cost should be reduced and the rate should continue to be reduced for each year without an accident/ticket.
RONALD777 Champion Author Houston Posts:2,432 Points:362,755 Joined:Nov 2007	Message Posted: Sep 30, 2012 11:04:08 AM Ignore RONALD777 Report Abuse You get to pick the company. Don't like their prices or methology? Go to a different company!
StArrow68 Champion Author Oakland Posts:3,250 Points:1,360,225 Joined:Apr 2003	Message Posted: Sep 30, 2012 10:10:06 AM Ignore StArrow68 Report Abuse Face it, if they all advertise that you save money by signing with them, then they are charging too much to current customers after they stay awhile. What the 'consumer group' won't say is that they want to get those more able to pay to pay more for those that are less able to pay. Sounds like a subsidy to me. It's not about a factor being driving related, it's about the factor measuring risk.
DerHahn Champion Author Illinois Posts:13,704 Points:2,113,160 Joined:May 2004	Message Posted: Sep 30, 2012 10:06:39 AM Ignore DerHahn Report Abuse "Marital status, age, gender, education level, credit history and other factors are all strong indicators that correlate with the likelihood that an auto insurance customer will file an insurance claim, Hartwig said." never understood what credit rating had to do with driving ability. this is a total sham. i've seen drivers with excellent credit that would have put dale earnhardt to shame with their paint scraping abilities.
cheap59 Champion Author Michigan Posts:4,240 Points:961,520 Joined:May 2010	Message Posted: Sep 30, 2012 9:09:42 AM Ignore cheap59 Report Abuse The biggest problem is you have to have it!
wamster Champion Author Houston Posts:4,250 Points:694,080 Joined:May 2007	Message Posted: Sep 30, 2012 9:05:23 AM Ignore wamster Report Abuse Needs to be based fairly and equally.
MeiThink Veteran Author Mississippi Posts:356 Points:66,065 Joined:Oct 2010	Message Posted: Sep 30, 2012 8:41:44 AM Ignore MeiThink Report Abuse Insurance... damned it you do, damned if you don't...
danny999 Champion Author Florida Posts:8,718 Points:1,638,085 Joined:Oct 2008	Message Posted: Sep 30, 2012 7:48:34 AM Ignore danny999 Report Abuse Lots of luck trying to beat insurers.
mabrams184 Champion Author Lexington Posts:2,100 Points:533,060 Joined:Aug 2011	Message Posted: Sep 30, 2012 7:43:47 AM Ignore mabrams184 Report Abuse The more the insurance companies know about you, the more they are going to find ways to stick it to you. So go a head and use their plug in monitor. They'll give you a discount, then as soon as you do one thing wrong or out of the norm, BAM! there go you low rates.
WalRus49 Champion Author Boston Posts:4,070 Points:867,890 Joined:Nov 2010	Message Posted: Sep 30, 2012 7:38:22 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage...................
el_fr Champion Author Massachusetts Posts:3,332 Points:743,725 Joined:Apr 2011	Message Posted: Sep 30, 2012 7:34:48 AM Ignore el_fr Report Abuse You expected better from the lizard!?
jrny_freak Champion Author Hartford Posts:1,675 Points:269,695 Joined:Jun 2012	Message Posted: Sep 30, 2012 7:28:46 AM Ignore jrny_freak Report Abuse No wonder people think insurance companies have nothing but money and we see these ridiculous judgements in lawsuits - it is the only way to make insurance companies pay for raping us. If we were not required to have car insurance you can bet that the insurance companies would base rates on driving record only - they would want to make it attractive to have the insurance - more affordable and reasonable rates.
glorioussnookie Champion Author Tennessee Posts:3,761 Points:699,370 Joined:Feb 2010	Message Posted: Sep 30, 2012 5:26:20 AM Ignore glorioussnookie Report Abuse JohnoGB - I have had insurance quoted by GEICO and several others. None came close to my present insurance company. The grass is NOT greener on the other side. I have experienced the same when doing some checking, plus be careful if you do change companies, I have heard of huge increases once they get you signed on and it is renewal time! [Edited by: glorioussnookie at 9/30/2012 5:27:38 AM EST]
JohnofGB Champion Author Flint Posts:5,416 Points:1,095,220 Joined:Feb 2010	Message Posted: Sep 30, 2012 4:38:47 AM Ignore JohnofGB Report Abuse I have had insurance quoted by GEICO and several others. None came close to my present insurance company. The grass is NOT greener on the other side.
tjc09f Veteran Author Tallahassee Posts:468 Points:669,645 Joined:Mar 2011	Message Posted: Sep 30, 2012 3:07:18 AM Ignore tjc09f Report Abuse really? wow
Amplion Champion Author Oregon Posts:6,761 Points:1,864,085 Joined:Sep 2005	Message Posted: Sep 30, 2012 2:54:02 AM Ignore Amplion Report Abuse LOL
leemun Champion Author Utah Posts:5,528 Points:1,039,150 Joined:May 2010	Message Posted: Sep 30, 2012 2:38:13 AM Ignore leemun Report Abuse Why should a group with a proven history of problem driving be subsidized by good drivers? That's Obama-style "fairness."
flatrock14 Champion Author Michigan Posts:2,645 Points:775,805 Joined:Oct 2010	Message Posted: Sep 30, 2012 2:28:56 AM Ignore flatrock14 Report Abuse can you say cha ching for insurance companies
TXryder Champion Author Texas Posts:2,704 Points:431,755 Joined:Jan 2012	Message Posted: Sep 30, 2012 2:15:32 AM Ignore TXryder Report Abuse Yeah Yeah Yeah we already know insurance is about the second major cost to operating an auto with the gouged fuel prices being number one.
comprof Champion Author Houston Posts:6,854 Points:1,355,775 Joined:Jul 2009	Message Posted: Sep 30, 2012 2:11:44 AM Ignore comprof Report Abuse If there are statistical reasons for rates, what is the beef. I certainly do not want to pay for other's risks.
Pigboat Champion Author Oklahoma City Posts:14,825 Points:2,844,840 Joined:Mar 2005	Message Posted: Sep 30, 2012 2:02:28 AM Ignore Pigboat Report Abuse Check Wikipedia for actuarial tables.
snky2k Champion Author Indianapolis Posts:1,393 Points:302,590 Joined:Mar 2012	Message Posted: Sep 30, 2012 1:27:00 AM Ignore snky2k Report Abuse I suppose they have statistical reasons.
Volvodude04 Champion Author Fresno Posts:2,299 Points:271,950 Joined:Aug 2012	Message Posted: Sep 30, 2012 1:25:26 AM Ignore Volvodude04 Report Abuse Ok
ToolinIt Champion Author Colorado Posts:1,803 Points:886,320 Joined:May 2010	Message Posted: Sep 30, 2012 1:20:12 AM Ignore ToolinIt Report Abuse I've had Farmers Insurance for 3 decades and they never elevated my rates after my divorce or upon my being laid off a few years ago. Perhaps this article applies to new insurance applicants.
bston Champion Author Oklahoma City Posts:1,815 Points:641,300 Joined:Mar 2011	Message Posted: Sep 30, 2012 1:19:52 AM Ignore bston Report Abuse Auto insurers look for various reasons to rate customers for their premiums nowadays.
LtRTH Champion Author St. Louis Posts:1,767 Points:583,845 Joined:May 2011	Message Posted: Sep 30, 2012 1:17:08 AM Ignore LtRTH Report Abuse Insurance, the evil necessity. Another industry bent on ripping off their customers. Last time I renewed I got a letter saying my ratio of gas cards to standard credit cards was too high. I guess carrying around one or two too many gas cards makes me a risk for and accident. What a load of you know what.
anascom Champion Author Hamilton Posts:1,593 Points:553,115 Joined:Feb 2011	Message Posted: Sep 30, 2012 1:15:59 AM Ignore anascom Report Abuse auto insurance in Ontario is probably the worst and the most expensive in north america. it's pure organized mayhem and pillage !
jay93LA Champion Author New Orleans Posts:2,444 Points:598,735 Joined:Aug 2011	Message Posted: Sep 30, 2012 1:14:12 AM Ignore jay93LA Report Abuse statistics
DirtDauber Champion Author San Antonio Posts:6,776 Points:1,626,485 Joined:Nov 2005	Message Posted: Sep 30, 2012 1:13:30 AM Ignore DirtDauber Report Abuse Good.