The insurance industry is often criticized for the rates charged to insure people and things, but it's really under fire for the way it determines the price of car insurance.
Most of us understand that the more we drive, or the more tickets and accidents we have, then the more we'll pay for car insurance; but are insurance companies going too far in considering other factors?
Bob Hunter at the Consumer Federation of America, thinks so.
"Like how much education you have, what kinda job you have, how much you make," says Hunter.
Hunter and the federation set out recently to find out why so many drivers are uninsured even though most states require it.
What they found is like the woman in Miami who's single with a flawless driving record but only a high school diploma and in a low-paying job.
"They'll charge her for basic coverage, required by the state, $4024 in Miami," says Hunter.
But if she gets married, a college degree and a higher paying job, the premium drops to about $600 a year.
Hunter, who used to be the insurance commissioner in Texas, accuses some insurance companies of using income as a way to discriminate against the poor.
"They're trying to avoid the poor, and they know that if they just don't write them, they'll be accused of red lining. I think they're just trying to price them out of the market," says Hunter.
The industry flatly denies that on the insurance information institute's website and says factors like place of residence are fair game in determining rates.
So, the Consumer Federation wants the states to step in.
"They have to say look, we're requiring this insurance, we should do something to make sure people can afford it, who are good drivers," says Hunter.
In the meantime, the advice is the standard; shop and compare.
(Courtesy NBC News)
