Many drivers United Nations agency cause accidents expect to check a rise in their automotive vehicle insurance premiums. however even peopl...
Many drivers United Nations agency cause accidents expect to check a rise in their automotive vehicle insurance premiums. however even people who square measure deemed not blameworthy might find yourself paying a lot of for coverage, a report from a client cluster finds.
The Consumer Federation of America wanted on-line value quotes from 5 of the most important automotive vehicle insurers in ten cities to check what happens to premiums when drivers square measure in accidents. The study found that supported the quotes, drivers in big apple town and port tend to pay the foremost when being concerned in accidents that they didn't cause.
The penalties raise the prices of automotive vehicle insurance, that is needed for drivers in most states however valuable for several, aforesaid Doug Heller, the investigator United Nations agency conducted the analysis for the buyer federation.
“Innocent drivers United Nations agency don’t cause accidents mustn't be charged a lot of as a result of some other person hit them,” J. parliamentarian Hunter, the buyer group’s director of insurance, aforesaid in an exceedingly phonephone phone call in the week with reporters.
It is the newest in an exceedingly series of reports that the federation has printed on automobile insurance prices.
The new study aforesaid that the common annual premium increase quoted drivers with a not-at-fault accident on their records ranged from $60 in Atlanta to over $400 in Queens.
Two cities — la and OK|state capital} — showed no increase as a result of state laws in Calif. and Oklahoma forbid surcharges on drivers United Nations agency square measure concerned in accidents through no fault of their own, the buyer cluster aforesaid. (Other states may also limit surcharges, the federation said, but they were not studied.)
The report found differences in the way insurers applied surcharges. Progressive applied surcharges to every quote except in cities where their use is prohibited by state law.
Geico and Farmers sometimes raised quoted rates by 10 percent or more, while Allstate “occasionally” penalized drivers, the report found. State Farm was the only insurer tested that never increased quoted rates for drivers who had not-at-fault accidents.
A State Farm representative referred a request for comment to the Insurance Information Institute, an industry trade group.
Loretta Worters, a spokeswoman for the insurance group, cautioned that online rate quotes are merely a starting point. Insurers, she said, ultimately base auto policy rates on “much more information” than initially gathered through a quote requested via an insurer’s website.
David Snyder, vice president of policy development and research with the Property Casualty Insurers Association of America, another trade group, dismissed the analysis as “overly simplistic.” He said the report failed to take into account that states define not-at-fault accidents differently. Some states have blanket prohibitions on such surcharges in certain situations — say, if one car is parked. Other states allow penalties, but rules for how they are assessed vary depending on the circumstances of the accident, he wrote in an email.
“The end result is a report that attempts to present auto insurers negatively,” Mr. Snyder said, “but fails to provide customers with accurate or useful information.”
Here are some questions and answers about auto insurance:
Why do some insurers charge drivers for accidents they did not cause?
Insurers say it often is not clear which driver is at fault. Ms. Worters said your insurer may incur costs, even if you are not at fault, as a result of “subrogation,” or the process of seeking payment from the other driver’s insurer. “Assigning fault in an accident is rarely a zero-sum process where one driver is 100 percent at fault whereas the other driver is zero percent at fault,” she said.
There is “a tendency to believe the other driver is always responsible as opposed to me, when the facts may indicate otherwise,” Mr. Snyder said.
How can I tell if my insurer may penalize me for not-at-fault accidents?
Consumers should ask their insurers, or their insurance agents, if their policy allows for such penalties, Mr. Hunter said. If it does, you may want to seek quotes from other insurers.
What is the best way to keep my auto rates affordable?
Consumer advocates advise shopping around periodically. Mr. Hunter suggested clicking on a map available on the National Association of Insurance Commissioners website to find an insurance cost-comparison tool. Drivers will use the tool to check that insurers charge all-time low rates for folks with similar profiles.
He conjointly urged checking the insurers’ grievance records on the N.A.I.C. web site before creating a call. the method of comparison looking ought to take but associate hour, he said.
The Consumer Federation of America wanted on-line value quotes from 5 of the most important automotive vehicle insurers in ten cities to check what happens to premiums when drivers square measure in accidents. The study found that supported the quotes, drivers in big apple town and port tend to pay the foremost when being concerned in accidents that they didn't cause.
The penalties raise the prices of automotive vehicle insurance, that is needed for drivers in most states however valuable for several, aforesaid Doug Heller, the investigator United Nations agency conducted the analysis for the buyer federation.
“Innocent drivers United Nations agency don’t cause accidents mustn't be charged a lot of as a result of some other person hit them,” J. parliamentarian Hunter, the buyer group’s director of insurance, aforesaid in an exceedingly phonephone phone call in the week with reporters.
It is the newest in an exceedingly series of reports that the federation has printed on automobile insurance prices.
The new study aforesaid that the common annual premium increase quoted drivers with a not-at-fault accident on their records ranged from $60 in Atlanta to over $400 in Queens.
Two cities — la and OK|state capital} — showed no increase as a result of state laws in Calif. and Oklahoma forbid surcharges on drivers United Nations agency square measure concerned in accidents through no fault of their own, the buyer cluster aforesaid. (Other states may also limit surcharges, the federation said, but they were not studied.)
The report found differences in the way insurers applied surcharges. Progressive applied surcharges to every quote except in cities where their use is prohibited by state law.
Geico and Farmers sometimes raised quoted rates by 10 percent or more, while Allstate “occasionally” penalized drivers, the report found. State Farm was the only insurer tested that never increased quoted rates for drivers who had not-at-fault accidents.
A State Farm representative referred a request for comment to the Insurance Information Institute, an industry trade group.
Loretta Worters, a spokeswoman for the insurance group, cautioned that online rate quotes are merely a starting point. Insurers, she said, ultimately base auto policy rates on “much more information” than initially gathered through a quote requested via an insurer’s website.
David Snyder, vice president of policy development and research with the Property Casualty Insurers Association of America, another trade group, dismissed the analysis as “overly simplistic.” He said the report failed to take into account that states define not-at-fault accidents differently. Some states have blanket prohibitions on such surcharges in certain situations — say, if one car is parked. Other states allow penalties, but rules for how they are assessed vary depending on the circumstances of the accident, he wrote in an email.
“The end result is a report that attempts to present auto insurers negatively,” Mr. Snyder said, “but fails to provide customers with accurate or useful information.”
Here are some questions and answers about auto insurance:
Why do some insurers charge drivers for accidents they did not cause?
Insurers say it often is not clear which driver is at fault. Ms. Worters said your insurer may incur costs, even if you are not at fault, as a result of “subrogation,” or the process of seeking payment from the other driver’s insurer. “Assigning fault in an accident is rarely a zero-sum process where one driver is 100 percent at fault whereas the other driver is zero percent at fault,” she said.
There is “a tendency to believe the other driver is always responsible as opposed to me, when the facts may indicate otherwise,” Mr. Snyder said.
How can I tell if my insurer may penalize me for not-at-fault accidents?
Consumers should ask their insurers, or their insurance agents, if their policy allows for such penalties, Mr. Hunter said. If it does, you may want to seek quotes from other insurers.
What is the best way to keep my auto rates affordable?
Consumer advocates advise shopping around periodically. Mr. Hunter suggested clicking on a map available on the National Association of Insurance Commissioners website to find an insurance cost-comparison tool. Drivers will use the tool to check that insurers charge all-time low rates for folks with similar profiles.
He conjointly urged checking the insurers’ grievance records on the N.A.I.C. web site before creating a call. the method of comparison looking ought to take but associate hour, he said.
COMMENTS