APCIA says regulators and insurers are working to provide relief to policyholders
“The Consumer Federation of America used misguided logic and their public relations pitch misses the mark on many angles. Insurance rates are responsive to changes in the number and costs of claims. Rates are continuously adjusted at each policyholder’s renewal. It is also important to understand that rates are established using multiple years’ data, which means they adjust gradually, in both an upward and downward direction. If there is a sustained decline in number and cost of insurance claims, rates will be adjusted.
“The CFA does not mention that the cost of claims also has been increasing. That means that a decline in the frequency of crashes could be offset by the increasing costs of technology in vehicle parts, auto body repair, medical care, and lawsuit abuse.
“Regulators and insurers are working to strike the right balance on expanding temporary arrangements to provide immediate relief for those policyholders impacted by COVID. Now is not the time for arbitrary and artificial calls for national rate decisions. We urge all stakeholders to support flexibility in the marketplace.
“There are a number of ways that auto insurers are currently helping customers manage costs. During this extraordinary crisis, many companies are voluntarily offering arrangements for:
“Those individuals going through extraordinary life circumstances should call their insurer to discuss their options. Today, 21 states have additional consumer protection laws to address insurance scores that could be impacted by changes in credit scores. In addition, some insurers have pioneered pay-as-you-go auto insurance through new technology solutions.”