In its latest report on auto insurance premiums charged by the largest auto insurers, the Consumer Federation of America said these insurers frequently charge higher premiums to safe drivers than to those who recently caused an accident.
In two-thirds of the 60 cases studied, large auto insurers quoted higher premiums to safe drivers than to those responsible for an accident, according to the Washington, D.C.-based consumer advocacy group. In more than three-fifths of the cases with these higher premiums, the price quoted to the safe driver exceeded the premium quoted the unsafe driver by at least 25 percent.
The consumer group said these higher prices mainly reflect insurer use of rating factors such as education and occupation. The group said that in a 2012 nationwide survey, over two-thirds of Americans said using such factors were unfair.
Read More: Insurance Journal