UNDATED (AP) – Safe, loyal drivers aren’t always rewarded with cheaper rates.
Price optimization is the practice of charging higher rates based on the likelihood that a person will not shop around for a lower price, and it keeps good drivers paying more – based on data you may not suspect.
In fact, your insurance rates could increase based on anything from your magazine subscriptions to which groceries you buy.
Insurers create algorithms based on all kinds of personal data, including loyalty to other service providers and shopping behavior, but not your driving habits.
For comparison, a NerdWallet rate analysis shows the average cost of car insurance in 2019 was $1,621 per year.
