The average U.K. car insurance premium rose 1.8 percent in the first quarter to 781 pounds, according to data compiled by Confused.com and Willis Towers Watson.
and Direct Line Insurance Group Plc.
The British government in February cut the so-called Ogden discount rate used by car insurers such as Admiral Group Plc.
U.K. drivers may have to pay more than 1,000 pounds ($1,200) annually for car insurance next year, a 28 percent increase, after the government cut a key rate to calculate claims payments.
Following industry criticism, the U.K. on March 30 started a six-week period to discuss how it will set the Ogden rate in the future.
As it stated in “So it’s a cyclical sort of conundrum that we’re in.”Collins says credit scores and zip codes are “proxies” for race.
Steering residents toward subprime mortgages, or defining drives by their credit scores or ZIP codes.
She’s a sponsor of a bill that would forbid companies from using credit scores to determine auto insurance premiums.
Insurance companies also say the calculations are flawed and misleading.
A report recently published by ProPublica and Consumer Reports alleges disparities in the rates insurers charge to Illinois residents of minority neighbors versus white ones.
State Senators fight the discrimination in car insurance pricing
As it stated in A pair of Illinois State Senators are pushing to fight what they says is discrimination in car insurance pricing.
That’s being added to a bill that would bar insurers from using credit scores to set rates.
But the Illinois Insurance Association says more drivers get lower rates because of credit scores than the other way around, and that discrimination based on address, race and other factors is already prohibited.
Watkins was speaking at a news conference in support of legislation to prohibit discrimination by zip codes.
They don’t need to give it to an insurance company as an additional tax for being poor and black.