HELENA, Mont., Feb. 16 -- The Consumer Federation of America issued the following news release:
Today lawmakers in Maryland are holding a hearing on making auto insurance fairer. With auto liability insurance required by law in every state except NH, it is imperative that the law also require that rates are determined fairly, based on how consumers drive, rather than based on individual characteristics that have nothing to do with driving.
Maryland House Bill 916 would prohibit the use of non-driving related factors in auto insurance including credit history, employment or occupation, and education level.
"It's outrageous that several auto insurance companies in Maryland charge women between $450-$500 more simply for being a woman." Stated Marceline White, Executive Director of the Maryland Consumer Rights Coalition, "it shows how ludicrous the use of non-driving related factors are in setting rates. Marylanders-particularly women -would be better served if insurance companies set rates based on how people drive, not who they are."
"We want people to know that if they drive safely they can get a discount and they'll pay more if they rack up speeding tickets or cause accidents." Said Doug Heller, insurance expert at Consumer Federation of America, "But they shouldn't have to buy a house or get a master's degree, or a higher paying job or get their credit score fixed in order to be able to afford auto insurance. This bill works to ensure just that."
[Category: Consumer Services]