Repairer Driven News
« Back « PREV Article  |  NEXT Article »

Consumer Federation of America Calls Allstate Pricing Practice Illegal

By on
Share This:

The Consumer Federation of America (CFA) announced on Tuesday that it had uncovered a document from Allstate Insurance providing evidence that the insurer is basing customers’ auto insurance premiums on a new factor, called “marketplace considerations,” that has nothing to do with the risk that a driver will cause an accident or file any claims. Referred to as “Price Optimization,” this approach has been developed by insurance companies and consulting firms to increase profits by raising premiums on individuals who are unlikely to shop around to find a better price. The 1,300 page document was submitted to the Wisconsin Department of Insurance, and further research by CFA found that Allstate has introduced what they claim is an illegal pricing system in Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Louisiana, Maryland, Missouri, Oklahoma, Nebraska, Oregon, Pennsylvania, Tennessee, Utah, and Virginia; with a likelihood that the filing was made in many more states as well.

More on this topic:

Proof that Price Optimization is being Used and Producing Unfairly Discriminatory Rates
Consumer Federation of America, December 16, 2014

Smoking Gun Reveals Allstate’s Illegal Auto Insurance Pricing Scheme; Company Will Charge 30% More If a Consumer is Born on Jan. 12, 1968 Instead of April 9, 1968
Consumer Federation of America, December 16, 2014

Watchdog: Allstate Auto Insurance Pricing Scheme Is Unfair
DailyFinance, December 16, 2014

Share This: