American Property Casualty Insurance Association Issues Statement on Consumer Federation of America’s Auto Insurance Report

CHICAGO, Illinois, July 15 -- The American Property Casualty Insurance Association issued the following statement by Dave Snyder, vice president for policy, research and international:

The Consumer Federation of America's latest report on auto insurance is flawed and misleading. The central flaw in the report is that it fails to take into account that all the rating factors insurers use are proven tools for predicting the risk of loss.

"The report apparently does not consider the evidence that prior auto insurance limits correlate with the risk of loss. Regulators in nearly every state across the country have recognized this connection and approved the use of insurers using this as a rating factor.

"This report demonstrates the significant differences among companies and underscores the competitiveness of the industry and the importance of shopping.

"Nonetheless, we recognize that insurance can be costly for many families. Insurers are constantly pushing to reduce underlying costs that impact consumers.

"Medical costs, lawsuit abuse, theft, fraud, and preventable crashes account for almost 80 percent of every insurance premium dollar. We welcome CFA's partnership in addressing these cost drivers and insurance affordability."

Representing nearly 60 percent of the U.S. property casualty insurance market, the American Property Casualty Insurance Association (APCIA) promotes and protects the viability of private competition for the benefit of consumers and insurers. APCIA represents the broadest cross-section of home, auto, and business insurers of any national trade association. APCIA members represent all sizes, structures, and regions, protecting families, communities, and businesses in the U.S. and across the globe.