Insurers Defend How They Price Low Income Drivers

[The Straight Story]

Consumer Group Charges Auto Insurers with ‘Disparate Treatment’ of Low Income Families

A consumer group on Monday issued a study that alleges “disparate treatment” of low-to moderate-income families by auto insurers nationwide. The group is asking state insurance commissioners to consider lowering minimum liability coverage requirements and creating low-income purchase programs.

The study from the Consumer Federation of America (CFA) concludes that the auto insurance marketplace “denies important economic opportunities, especially those related to employment, to low- and moderate-income (LMI) households.”

The study’s intent, and message, was immediately attacked by several national insurance associations claiming the CFA report is misguided, infers “malicious intent,” makes incorrect assumptions about underwriting and even gets some of the facts wrong.

The CFA study asks state insurance regulators to ensure that auto insurance is fairly priced and affordable for LMI families so that they have greater access to car ownership and jobs.

“We think these solutions are fair and practical and can be delivered by state insurance commissioners,” said J. Robert Hunter, one of the report’s authors, a former Texas insurance commissioner. CFA’s Executive Director Stephen Brobeck co-authored the report.

http://www.insurancejournal.com/news/national/2012/01/30/233278.htm

[gopiscrap]

1. Thats fucked up

I hate insurance companies, nothing but a bunch of vultures

[ret5hd]

2. think what would happen if national health care was implemented:

no more medical costs on auto insurance.

[Thaddeus Kosciuszko]

3. I am sure that the automobile insurance industry is not perfect;

but I cannot detect a crisis that rises to level - critical. Please, don't "fix" it.

The Solomons of insurance wizardry should test their theories using themselves guinea pigs, before exposing the general public to potential unknown dangers.