The Consumer Federation of America (CFA) is encouraging consumers to contact their insurance companies to see if they qualify for immediate auto rate reductions based on the fact that most consumers are now driving less due to the price of gasoline topping $4 a gallon nationwide.
The CFA says consumers are using mass transportation, car-pooling, taking fewer trips to the store or curtailing their vacations in response to skyrocketing fuel prices.
“Auto insurance rates are partially based on how much you drive and how you use your car,” said J. Robert Hunter, director of insurance for CFA and former Texas insurance commissioner and federal insurance administrator. “If you drive less to save money on gas, these driving changes might mean that you qualify for immediate insurance rate relief. We encourage all Americans to act now to save money by calling their insurance company or agent and asking if they qualify for an immediate rate reduction.”
The CFA also recently sent a letter calling on the nation’s Governors to “act immediately” to require insurance companies to lower their rates as Americans drive less.
“As Americans drive less because of the price of gas, fewer claims will be filed with insurance companies,” said Hunter. “Whether this will mean windfall profits for insurers or rate cuts for the consumers is up to Governors and state regulators to determine. We ask that each state immediately call hearings to determine the right auto insurance prices under the changed driving situation.”
For more information on the CFA, visit www.consumerfed.org.
