Home Insurance Most Americans Support Insurance Price Rating Factors, According To Survey – Forbes Advisor

Most Americans Support Insurance Price Rating Factors, According To Survey – Forbes Advisor

by Cedric Guzman

Title: Americans Hold Mixed Views on Insurance Pricing Factors, Survey Finds

Most Americans believe that insurance companies use fair rating factors when pricing policies, according to a recent survey conducted by the Insurance Research Council (IRC). However, there are certain factors that garner less support from the public. This article explores the findings of the survey and provides tips on saving money on car and home insurance.

Fair Pricing Factors for Car Insurance
The IRC survey reveals that a majority of respondents consider certain driving behaviors as fair pricing factors for car insurance. These factors include previous traffic violations, claims history, and the use of telematics systems to track driving behaviors. However, less than half of the respondents believe it is fair for insurance companies to consider non-driving factors such as gender, marital status, or education level when setting car insurance rates.

Home Insurance Pricing Factors
When it comes to homeowners insurance, the survey indicates widespread support for certain pricing factors. Factors such as the overall condition of the insured property, the quality of its roof, and the presence of safety systems like smoke detectors are considered fair game. However, a significant portion of respondents (38%) believe it is unfair for insurance companies to consider the condition of the surrounding buildings when setting home insurance rates.

Challenges and Tips for Saving on Insurance
The survey highlights that 47% of respondents find paying for car and home insurance to be a challenge. To address this, here are some tips for cost-saving:

1. Shop Around: Comparing car insurance quotes from multiple companies is key to finding a good price. Take advantage of online tools and resources to easily compare different policies.

2. Bundle Policies: Consider bundling your home and auto insurance policies with the same insurer. This often results in a discount, saving you money on both policies.

3. Ask for Discounts: There are numerous discounts available for both car and home insurance policies, such as good driver discounts or discounts for home renovations. Don’t hesitate to inquire about potential discounts to optimize savings.

The IRC’s survey reveals that while Americans generally believe that insurance companies use fair rating factors, there are disparities in opinions when it comes to certain factors. It is important for insurance companies to consider public sentiment when establishing pricing criteria. Additionally, consumers can take proactive steps, such as shopping around, bundling policies, and exploring available discounts, to save money on their car and home insurance premiums.

related posts