Car Insurance Secrets: Tariffs That Are Tied to Much More Than Your Driving Record – WSB-TV Channel 2

ATLANTA – Georgians Pay More For Car Insurance.

But a Channel 2 action news Research shows that some of us are hit harder than others.

Channel 2’s Sophia Choi learned that your marital status, age, zip code, and credit history all play a role in how much you pay for your auto insurance.

“Insurance companies are in the moral judgment business. That’s what they do. You judge your character every day, ”said Tim Ryles, former Georgia insurance commissioner.

A 2016 study by the Consumer Federation of America selected multiple cities to compare insurance rates. Atlanta was trapped. For the study, four people with different incomes and different levels of education were brought into the same house.

The result: Atlanta residents who made less money were charged 92 percent more.

“That’s about $ 862 a year more for auto insurance than consumers with higher socioeconomic status,” said Beth Stephens of Georgia Watch. “That’s $ 862 that consumers could use to buy groceries, do car repairs, pay for a daycare center, or pay for medical expenses. So for a lower-income family, the $ 862 difference is really significant. “

“It doesn’t seem like a fair system,” said driver Alex Solomon.

Another driver, Freddy Gonzolas, agreed.

“No, I don’t think that’s fair,” he said.

2 EXAMINED:

Drivers told it too Channel 2 action news They don’t like insurance companies to use their creditworthiness to decide what to pay for auto insurance.

However, insurance companies say there is a direct correlation between lower credit scores and higher claims.

Did you know? Your creditworthiness can affect your car insurance plan.

“Insurers don’t pay attention to income. What insurers look at is just risk and risk, ”said risk management expert Robert Hartwig.

However, former Georgia Insurance Commissioner Tim Ryles says this doesn’t make any sense.

“Does my creditworthiness force me to look the other way and not see the light change, drive into an intersection and cause an accident? My credit rating doesn’t tell me that. I don’t think anyone says it should do that, ”said Ryles.

In 2015, Consumer Reports found that a Georgian with poor credit would pay more for auto insurance than someone with great credit but with a DUI. The difference: $ 282, or 13 percent more.

“That’s pretty unfair because it’s like maybe they should let us know why they are raising interest rates and what the specific reason is,” said Solomon.

Stephens says it’s a good idea.

“What we don’t have in Georgia is a lot of transparency about how auto insurance rates are set,” said Stephens.

Most states allow insurance companies to take credit scores into account when setting tariffs. Only three states prohibit the practice: California, Hawaii, and Massachusetts.

[Click here to read this story in Spanish]

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