Consumer Group Calls on Oregon Legislature to Institute Fairness in Auto Insurance

The price Oregon auto insurance companies charge to a 35-year-old female driver with a safe record is 11.4% higher than is charged for the same coverage to male drivers, according to new research by the Consumer Federation of America (CFA). Using data from 10 of the largest insurers in Oregon representing over 75% of the auto insurance market, CFA also determined that a driver with a poor credit rating will be charged 113% more than the exact same safe driver if that driver had excellent credit.

Using industry data purchased from Quadrant Information Services, LLC that reports the premium charged for a minimum limits auto insurance policy in Oregon, and weighting the data according to market share, CFA found:

· Women will be charged, on average, $976.05 annually for basic coverage, while men will be quoted a premium of $876.20, all other characteristics being equal — a $100, or 11.4%, gender penalty;

· Drivers with a Fair credit rating will be charged $311.45 more than Excellent credit drivers, a 52% credit penalty; and

· Drivers with a Poor credit rating will be charged $674.38 more for basic coverage than Excellent credit drivers, a 112.9% penalty.

Citing this data, and recent Consumer Reports research highlighting the surcharges some insurers impose on blue collar workers and those without college degrees, CFA calls on the Oregon legislature to pass auto insurance…