“How do we set premiums? Wouldn’t YOU like to know.”Auto Insurance companies are adopting increasingly complex pricing systems with the bottom line result of fewer customers seeing any real savings. Why the disparity? For starters, premiums vary widely by state. According to a 2007 study from the National Association of  Insurance Commissioners, the average year-long policy in 2005 cost $949—ranging from a low of $664 in Iowa to a high of $1,343 in the District of Columbia.Further clouding buyers perceptions are the formulas used to set premiums for individuals. Twenty years ago most insurers sorted customers into four or five pricing tiers, based on where they lived, their age, and their driving record. Over the past decade, hundreds of variables have been added to the mix, including credit history, home ownership, and limits on past policies. Since each insurer interprets these variables differently, it’s even tougher for consumers to get a handle on the system. [Read More] ...read more