Poor Credit May Raise Premiums Higher Than a Drunk Driving Conviction
YONKERS, NY—The amounts drivers pay for their car insurance premiums are based on confounding algorithms that increasingly have more to do with socioeconomic factors than driving habits, according to extensive research conducted by Consumer Reports.
The organization, which believes that knowledge about the going rate of any product or service is a fundamental consumer right, has released the findings of a two-year, in-depth car insurance investigation. The report analyzed more than 2 billion price quotes for sample drivers that were obtained in August and November 2014 from more than 700 companies across all 33,419 general U.S. ZIP codes. The report includes Amica and USAA, which have been consistently top-rated for claims satisfaction by tens of thousands of Consumer Reports’ subscribers since the late 1990s, and the largest insurers operating in each state, which usually included Allstate, Geico, Progressive, and State Farm. For companies that had more than one subsidiary in a state, Consumer Reports used whichever company had the largest in-state market share.