Auto insurers discriminate against low-income drivers, NYPIRG says
By Samantha Maziarz Christmann, The Buffalo News, N.Y. | |
McClatchy-Tribune Information Services |
An industry spokesman said companies are operating properly and use accepted indicators that predict risk to set rates.
In
Liberty Mutual quoted the same fictitious
The group wants the
NYPIRG said using those socio- economic indicators when calculating insurance premiums is as discriminatory as using a consumer's income as an underwriting factor -- something insurers are legally prohibited from doing.
But auto insurers said there is nothing untoward about the practice.
"These factors are correlated with risk, which is why regulators have allowed the use of education and occupation in determining how much a consumer pays for insurance," said
"Companies are only allowed to use factors that are predictive of loss," she said.
Melchionni said that insurance pricing is more transparent than ever and that more than 60 insurance companies in the state compete on price and underwriting to give consumers a wide range of prices and options.
"Companies use a variety of underwriting factors to determine the price of a policy, all of which have been approved for use by regulators," Melchionni said.
But NYPIRG insists the focus should be on driving record and experience.
"We're not convinced that there's a correlation between attained education level or employment-tier status and driver safety," said
He noted that
"The government requires all
email: [email protected]
___
(c)2014 The Buffalo News (Buffalo, N.Y.)
Visit The Buffalo News (Buffalo, N.Y.) at www.buffalonews.com
Distributed by MCT Information Services
Wordcount: | 471 |
Proactive Training Solutions’ Alan Ram Delivered Best Practices for Increasing Online Conversation Rates at 2014 Toyota Los Angeles Region Dealer Meeting
Sticker shock strikes at city parking lots
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News