Update from Ralph Bristol Morning News - BBB Middle Tennessee can be heard Fridays at 7:35am on the Ralph Bristol Nashville Morning News, WTN 99.7 (FM Radio)
Consumer Federation of America study confirms non-driving factors can be much more significant than accidents and driving record when setting rates by auto insurers.
BBB advises you on a little known secret about how many auto insurers are setting rates NOT BASED ON DRIVING RECORD, but on your level of education and what you do for a living!
Some insurers believe they can accurately predict that, for example, a person with a master's degree who has had multiple claims will cost them less over time than someone who has never had an accident but only has a high school diploma.
Take a look at the full study conducted by the Consumer Federation of America (study released in Feb 2013)
This is serious over-analyzing of data, and it's a prime example of what computer programs make possible in the name of commerce.
As a result, the premium difference could be hundreds of dollars a year for the same driver from one insurer to another.
The good news: Not all insurers are doing this classification and even those who do have big differences in how they factor info about education and occupation into a final premium quote.
Most everyone believe that insurance should be a based on a merit system. Sure, it's reasonable for age to be factored in -- think about the dangers of young drivers (and some very old ones) behind the wheel. But over time, whether or not one has claims should determine what they pay.
Characterizing education and occupation can be ridiculous criteria and grossly unfair.
So what can you do? Free enterprise, competition and choice are still the best friend a consumer has in the marketplace.
When it’s time for your annual insurance renewal, be sure to shop the marketplace and get multiple quotes.
# # #
When in Doubt, remember to check with BBB for information on
businesses you can TRUST by visiting
The BBB of Middle Tennessee, Inc. was founded in 1961 as a non-profit Tennessee organization serving 38 counties in Middle Tennessee and 7 counties in Southern Kentucky. The first BBB was founded in 1912. Today, BBBs serve communities across the U.S. and Canada.
Serving as the 'ethical gatepost' of our communities, BBB fosters and promotes ethical business practices and self-regulation standards that build consumer trust in the marketplace. BBB services include business reliability information, complaint resolution services and consumer and business educational information.
[Subscribe Here] to
receive Alerts & News updates from the BBB