CHICAGO - The Consumer Federation of America issued areport addressing auto insurance costs and the following statement can beattributed to Robert Passmore, Senior Director, Personal Lines Policy, PropertyCasualty Insurers Association of America (PCI).
“Auto insurance provides consumers with a good value as itprotects some of our most important assets. Compared to other household costs,auto insurance has not gone up nearly as much as other costs such as housing,and is a small percentage of most household incomes.
“But any discussion of affordability of auto insurance musttake into account the underlying costs that drives auto insurance prices. It isimportant to note that auto insurance costs reflect the actual, comparativecosts of providing the coverage, such as driver usage and history, roadwaycongestion and the number of accidents and related lawsuit, health care andauto repair expenses in the area where the car is garaged.
“We understand the desire that everyone has to pay less forgoods and services. However, there are a number of actions that would betargeted at bringing down the cost drivers for insurance, such as lawsuitreform, avoiding mandatory insurance level increases, low cost auto programsand more highway safety and antifraud measures. These actions would benefit allconsumers.
“Additionally, PCI encourages consumers to be informed andshop around for insurance. Turning on the TV or radio or visiting the internetwill clearly demonstrate how very competitive auto insurance is, and thatcompetition helps hold rates down to their lowest responsible level.”
Consumers can visit the National Association of InsuranceCommissioners (NAIC) web site Insure U (
5 Tips for Consumers
1. Shop Around
2. Consider higher deductibles
3. Ask about discounts
4. Reduce your risk of loss
5. Review your coverage annually