A new study by the Consumer Federation of America lauds State Farm "as a company that is successful" in the highly competitive personal-auto market without the need to use "highly discriminatory factors" in setting rates.
The study, released today, found that four out of five insurers in 12 competitive markets, by placing too much emphasis on other rating factors, frequently charge higher premiums to safe drivers than to those who recently caused an accident (seen in two-thirds of the 60 cases studied).
In more than three-fifths of the cases with these higher premiums, the premium quoted the safe driver exceeded the premium quoted the unsafe driver by at least 25 percent, the study found.
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