Unfair Ratings
January 14, 2009 Guide, Insights, Related Facts Comments Off
Some insurance companies operating in the US have been denied their plea to obtain permission to raise auto insurance rates mainly due to their engaging in unfair insurance issuance practices. These firms were found to have been issuing pro-rated policies based on the applicant’s credit rating which they research through the internet. Considered as a form of discrimination, it is disallowed and thus violates the law. The erring firms were issued warnings regarding their practices and were advised to follow non-discrimination laws.
Many people are are driving without proper coverage that makes auto accidents all the more tragic. These figures of uninsured drivers are expected to rise and with the economy on the rocks, more and more drivers are expected to go without the safety net that is auto insurance by 2010. With the number of cars growing each and every year, accidents are more becoming part of the overall picture costing thousands of lives.