Auto insurance rates have increased at more than twice the rate of inflation recently, with premiums hitting a national average of $1,427, an online marketplace has found. Catastrophic weather drove some of the rate increases last year, the Zebra says. What the report only hints at, however, is how unfair these rates are to some — and how ineffectual state regulators have become at regulating them. Consumer advocates say insurers have become adept at using Big Data to set rates for drivers using formulas that are complex and sometimes hidden from view. In the crazy, mixed-up world of car insurance, credit ratings and college diplomas can have a bigger bearing on car insurance premiums than someone’s driving record. The people most often hurt are low-income drivers who can least afford to buy state-mandated insurance, they say.
Read Article: The Washington Post
From the Texas Trial Lawyers Association news release.
