New York Unfair Auto Insurance Pricing

State Sen. Kennedy calls for auto insurance investigation 

New York State Sen. Tim Kennedy is calling for an investigation into New York State auto insurance rating and pricing practices.

Kennedy sent a letter to Benjamin Lawsky, superintendent of the New York State Department of Financial Services, expressing concern that “New York’s insurance companies are unfairly, and possibly illegally, overcharging their customers” and asking the department for a full investigation.

According to an independent research group in New York, the countries largest auto insurance companies are using education level and salary/income level to decide your insurance premiums. On average, the higher your education level and salary, the lower your monthly auto insurance payment. Even in cases where lower level income drivers had clean records without traffic tickets, had higher premiums than drivers with trickets who had higher income levels. 

“What is even more surprising about the statistics in the report is that drivers with worse driving records but higher education or income would still receive a lower quote than their lower-income or less-educated counterparts with better driving records.

Lawmaker calls for investigation into auto insurance rates

Your car insurance should be based one thing: your driving record. A recent study shows some companies hike their rates as much as $400 a year for drivers without  a college degree. Regardless of degree or job title, drivers in New York pay among the highest auto insurance premiums in the nation.