This holiday season, it may not just be your family members who make you feel judged. You might be feeling unfairly judged by your car insurance company — and you’re not alone.
A recent survey of 1,000 American drivers found that 70% feel an insurance company has judged them unfairly or stereotyped them when setting their car insurance rates.
Mobility data and analytics company Arity polled drivers with problematic driving profiles, including those with coverage lapses, traffic violations, and low credit scores. The survey found that many drivers feel “the rates they see while shopping for coverage are often based on broad assumptions,” according to Arity. Rates “can feel disconnected from their actual driving habits.”
In fact, 54% of respondents feel they pay more because of non-driving factors like poor credit. And 28% believe their age, gender, or other personal traits have unfairly affected their car insurance costs.
Overall, respondents were deeply skeptical about auto insurance, with 82% saying car insurance rating is designed to favor insurers, not drivers.
What drivers think insurers get wrong
Auto insurance rating models are complex and often look at non-driving factors to help insurers estimate a driver’s risk of filing a claim. But those factors don’t always reflect how people actually behave behind the wheel, survey respondents felt.
Arity found that:
54% felt they’ve paid more for insurance because of non-driving factors, like a low credit score.32% felt insurers assumed they weren’t financially reliable and would struggle to pay their premiums.28% believe they were treated differently due to their age, gender, or other personal characteristics.24% said they were classified as bad drivers despite having clean driving records.21% felt insurers assumed they’d be more likely to file claims.
Moreover, 71% said their policies don’t reflect how they actually drive.
What’s next? Drivers want more transparent and equitable pricing
High premiums frustrated 67% of surveyed drivers who felt the costs didn’t accurately reflect their driving habits. And, although many expressed concerns over how insurers use, share, and protect their personal data, the majority said they would be willing to share their data if they knew it would help them save money, get behavior-based pricing, or earn rewards.
Arity’s survey asked drivers how they’d like to see insurers use driving behavior data. More than half (53%) said insurers should provide rewards and discounts for safe driving, and 51% felt insurers should lean on data to more accurately align premiums with individual driving behavior.
“This moment is about more than pricing,” Gary Hallren, president of Arity, told insurance industry publication Carrier Management. “It’s a chance to strengthen the relationship between insurers and drivers. Drivers want to feel in control. They want clarity instead of guesswork. And they want to know their everyday behavior behind the wheel plays a greater role than things like past incidents or credit scores.”
Related articles
