̽»¨¾«Ñ¡

FOR IMMEDIATE RELEASE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, September 29, 2014 — The Consumer Federation of America (CFA) misleadingly focuses on price quotes, rather than policyholder expenditures, when assessing U.S. auto insurance coverage affordability.

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The CFA is also under the mistaken impression that what a policyholder would like to pay for coverage is relevant to pricing an insurance policy in an actuarially sound manner.

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The ̽»¨¾«Ñ¡ Information Institute (I.I.I.) asserts, in the alternative, that actual expenditures convey the true story of U.S. auto insurance coverage affordability while the number, and cost, of actual claims drive the price of auto insurance in every state and community in the country.

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The I.I.I. after the U.S. Treasury Department’s Federal ̽»¨¾«Ñ¡ Office (FIO) solicited public comments on the issue of earlier this year.

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In June 2014, the I.I.I. shared with the FIO its key findings, based on data from the National Association of ̽»¨¾«Ñ¡ Commissioners (NAIC) and the U.S. Bureau of Labor Statistics (BLS).

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• In 2011 auto insurance expenditures consumed no more than 2 percent of a U.S. policyholder’s annual income, even for the poorest 20 percent of Americans.
• Auto insurance expenditures for the poorest 40 percent of Americans declined by 14 percent between 2008 and 2012.
• Between 2001 and 2011 auto insurance expenditures increased 10 percent while other essentials, like health care (+52 percent), housing (+29 percent), public transportation (+29 percent), and food (+21 percent) grew at a significantly greater rate.

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The I.I.I. has a full library of educational videos on its . Information about I.I.I. mobile apps can be found .

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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

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̽»¨¾«Ñ¡ Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;

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