Report Says New York Auto Insurers Unfairly Use Education Level, Occupation When Setting Rates

April 3, 2014
Associated Press 
auto financing news
A recent New York Public Interest Research Group (NYPIRG) analysis found that the state's largest auto insurers factor driver's education level and occupation when calculating policy rates, often charging blue-collar workers more than college-educated professionals.

Analyzing online insurance quotes, NYPIRG found that prices ranged by hundreds of dollars depending on education and occupation. The group says using these factors to set rates is a disadvantage for minorities, who are statistically less likely to have a college degree or a management-level or professional occupation. It has asked the New York Department of Financial Services to review the practice to determine if it violates state insurance regulations.

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