Survey Reveals Frustration With Auto Insurance Costs and Credit-Based Pricing

A new survey from Arity reveals deep frustration among American drivers over traditional auto insurance pricing models. With premiums often influenced by credit scores, age, gender, and other demographic factors, drivers are questioning the fairness and transparency of how rates are calculated. A significant majority—71%—say their current policy does not reflect how they actually drive, while 82% believe premiums are designed to benefit insurers, not consumers.

This growing dissatisfaction has implications for claims adjusters, especially as more drivers seek data-driven pricing that reflects real-world behavior. When policyholders feel judged unfairly or overcharged due to non-driving factors, it can affect their trust and cooperation during claims handling.

Drivers with risk factors like traffic violations or low credit scores are especially skeptical. Many feel their insurance rates don’t reflect improvements in driving behavior, while others suspect they are penalized for stereotypes or past mistakes. Despite these concerns, most respondents express interest in sharing driving behavior data—if they can see how it benefits them through discounts, fairer pricing, or improved transparency.

Arity’s new driving score report aims to build trust by providing drivers with a clearer understanding of how their habits affect premiums. For insurers, this presents an opportunity to attract and retain high-value customers through smarter segmentation, and for adjusters, it signals a shift toward policies backed by quantifiable behavior rather than static risk proxies.

As usage-based insurance programs expand, claims professionals will increasingly encounter policyholders who expect their telematics data to influence both their premiums and claims outcomes. Adjusters will need to be aware of how this data is being used and communicated to support fair and efficient claims resolutions.