New research from the Consumer Federation of America shows that the nation's two largest auto insurers, State Farm and Allstate, charge lower- and moderate-income drivers with poor credit scores much higher premiums than drivers with excellent scores, even as surveys that show a majority of Americans are against the use of credit scores for the pricing of insurance policies.
The CFA released its latest report, “The Use of Credit Scores by Auto Insurers: Adverse Impacts on Low- and Moderate-Income Drivers” yesterday at a live teleconference.
However, insurance experts say this announcement is nothing more than old news, minus a well-researched decision that credit scoring is a proven significant factor in determining which drivers may file a claim.
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