Study Finds Job and Education Influence Car Insurance Rates

This week two different organizations reported they had done independent studies, both finding that job and education influence car insurance rates.

As everyone knows, a lot of different items impact the price of insurance. ValChoice guides people through the shopping process by making insurance easy. Click a button below to find the best insurance companies in your state. The information is free.

The first article below shares the results of NYPIRG, New York Public Interest Group. The second report is from the Consumer Federation of America (CFA).

Study finds job and education influence car insurance rates

A new statewide study reveals the high cost of being of poor. According to an analysis by the New York Public Interest Research Group, big auto insurers charge less educated and lower-tier workers higher rates. NYPIRG Consumer Advocate Andy Morrison says based on the same criteria, except for education […]

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Consumer advocates demand insurance regulators stop price optimization

You’ve surely heard various pro-individuality proverbs like “Be yourself” or “To thine own self be true,” but if you’re trying to get the best rate for your auto or homeowner’s insurance policy, maybe it’s a better idea to “Be somebody completely different or at least act like it, so insurance companies won’t use ‘price optimization’ against you.”

The report by the Consumer Federation of America and the Center for Economic Justice states:

The products use “price elasticity of demand” research – which incorporates sophisticated market analyses to determine which customers would be likely to accept price increases and which customers, in the face of an increase, would shop around.  This enables companies to predict whether or not they could get away with rates higher on certain groups of customers.  The consumer groups noted that low-income customers – who have fewer market options due to geography, time available, and financial literacy, tend to shop less than wealthier consumers.  These low-income consumers are the ones most harmed by price optimization.

Click here to view original web page at www.consumeraffairs.com

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