Policyholders brace for credit-based auto rates

0
Twice as many policyholders now say a driver’s level of education should factor into car insurance rates, Forbes Advisor found. Only 28% of respondents said education should not be considered, down from 67% the previous year. (Credit: Shutterstock.com)

According to Forbes Advisor, according to Forbes Advisor, 42% of policyholders believe that credit scores should be factored into auto insurance rates. In 2021, only 22% of consumers said the same.

Additionally, only 36% of respondents said they don’t think credit scores should be a factor in setting car insurance rates, down from 69% the previous year.

Chart showing survey results. (Credit: Forbes Advisor)

Consumer advocacy groups and some state lawmakers argue that using credit scores to set rates unfairly increases insurance costs for certain demographics and is discriminatory. Forbes Advisor reported that in the 46 states that allow the use of credit in auto insurance, policyholders with bad credit see an average rate increase of 75% over those with good credit.

Education level factorization

Likewise, twice as many policyholders now say a driver’s level of education should factor into car insurance rates, Forbes Advisor found. Only 28% of respondents said education should not be considered, down from 67% the previous year.

Nearly 60% of car policyholders also think a person’s occupation should be taken into account by car insurance companies, up from 36% in 2021.

Chart showing survey results. (Credit: Forbes Advisor)

One area consumers think insurers should stop using for car insurance rates is gender, Forbes Advisor reported. More than 60% of respondents oppose it, including 72% of women, who generally pay less for their car insurance.

Get a fair deal

Auto insurance policyholders also find their insurance rates to be fair, with 58% describing their auto insurance costs as “fair” to “very fair”. This is an increase from last year, when only 48% of drivers felt their car rates were fair or very fair.

Chart showing survey results. (Credit: Forbes Advisor)

In addition to credit-based rates, policyholders are also bracing for usage-based insurance options, Forbes Advisor reported. In 2022, 64% of drivers say they are comfortable allowing their insurers to monitor them closely in exchange for lower rates for good driving. Last year, 51% of drivers said the same.

Related:

Share.

Comments are closed.