Insurers rip off consumers, group says

Firms boost profits by overcharging policyholders, underpaying claims, study finds

Marcy Gordon, Associated Press
Friday, January 11, 2008

(01-11) 04:00 PST Washington --

U.S. insurance companies systematically overcharge customers and underpay home and auto claims to pad their already-fat bottom lines, a consumer group said Thursday.

The Consumer Federation of America's insurance director, Robert Hunter, said insurance companies have enjoyed robust profits and contained losses largely by "methodically overcharging consumers, cutting back on coverage, underpaying claims and getting taxpayers to pick up some of the tab for risks the insurers should cover."