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Posts Tagged ‘consumer federation of america’

Panel of Advocates Push for CAFE Standards to Remain Unchanged

Auto industry thrives financially with tougher rules.

by on May.10, 2018

Former NHTSA Deputy Administrator David Friedman called on the Trump administration to leave CAFE unchanged.

The Trump administration is courting economic and environmental disaster if it elects to heed to the initial wishes of automakers and rolls back Corporate Average Fuel Economy standards, according to a panel of consumer, economic and environmental safety advocates.

A group of five advocates asserted that President Trump’s desire to rollback fuel economy and emission standards to levels below the Obama-era mandate will ultimately harm consumers, the environment and the economy.

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“The current CAFE requirements are good for consumers — period,” said David Friedman, director of Cars and Product Policy, Consumers Union, during a conference call. “The rollback the industry has sought and this administration has delivered will hurt consumers.” (more…)

Make Less? Pay More for Auto Insurance

New study shows insurers charge higher rates on lower income drivers.

by on Jun.27, 2016

The difference among the top five auto insurers in 15 cities based on what a driver makes can be substantial.

Auto insurers use a variety of factors to determine what they should charge consumers, and not all are fair; however, one seems to punish those who can – so it seems – least afford it: lower wage earners.

A new study by the Consumer Federation of America shows that drivers with a lower socio-economic status were charged an average of 59% more, equating to $681, annually than drivers with identical driving histories, but with better salaries.

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“Insurance companies should judge you on how you drive, not who you are,” said J. Robert Hunter, CFA’s Director of Insurance and former Texas Insurance Commissioner. (more…)

Auto Insurers Tag Renters with Higher Rates

Consumer group accuses companies of discrimination.

by on Feb.08, 2016

The last time you got one of these may not be the biggest factor in what you pay for auto insurance.

If you think your last speeding ticket is the reason your car insurance is so high, you may want to think again: it may be your home.

More precisely, your auto insurance rate may be directly tied to whether you own your home or if you rent, according to a recent report from the Consumer Federation of America.

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If all things are equal, insurance companies charge as much as 47% more for basic liability auto insurance if a driver doesn’t own a home, according to a new analysis of premiums. (more…)

Consumers Expect Gas Prices to Rise Sharply Again

Increase of 50% over next two years likely, finds new study.

by on Feb.19, 2015

Gas prices are expected to rise in the near term after falling for several months.

Consumers may relish the sharp slump in fuel prices during the last few months, but they anticipate prices will eventually rebound – and want automakers to continue putting a premium on fuel economy, according to a new survey.

In the early weeks of the New Year, motorists in more than 40 states were paying less than $2.00 a gallon, according to industry reports. But the new study by the Consumer Federation of America (CFA) predicts prices will surge back to around $3.20 a gallon within two years. Looking five years out, meanwhile, they expect to be paying around $3.90 a gallon at the pump.

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“There’s a good reason why today’s car buyers still believe fuel efficiency is important—they understand that gas prices always go back up,” said Jack Gillis, CFA director of Public Affairs and author of The Car Book.  (more…)

Low- and Moderate-Income Drivers Penalized by Unfairly High Insurance Rates

New study claims most insurers discriminate based on income, education levels.

by on Jan.26, 2015

The Honda Civic may cost more, unfairly so, to insure if you live in the inner city, according to the CFA.

This story has been updated to include a response to the CFA study by an insurance industry trade group.

Millions of low- and moderate-income American motorists, especially those with lower education levels and living in inner cities, are being unfairly penalized with high insurance rates, even if they have steady jobs and clean driving records, contends the Consumer Federation of America.

In a survey of 15 cities and surrounding suburbs, these motorists routinely were required to pay at least $900 for collision and comprehensive coverage, with 50% being hit with bills of more $1,500, according to a new CFA study that checked rates for a 30-year-old female bank teller with 10 years driving experience and no collisions or tickets on her record, owning a 2004 Honda Civic.

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“The price can easily double or triple” for a person of moderate means and lower education, said J. Robert Hunter, the consumer group’s Director of Insurance and a former Texas Insurance Commissioner. (more…)

New Car Buyers Pushing for Better Fuel Economy

Report shows federal mandate, consumer demand drives improvement.

by on Jun.23, 2014

Trucks are hot sellers these days, in some measure because they are getting better gas mileage than ever.

With new cars and trucks getting better gas mileage than ever and new vehicle sales hitting record highs, it’s no surprise that consumers expect their new purchases to continue to be more fuel efficient.

The Consumer Federation of America (CFA) released the results of its annual report today, which found that new vehicles are not only more economical, but also consumers are in favor of the fuel-efficiency rules helping to usher these vehicles to the market.

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“Consumers want and expect the vehicles they intend to purchase to get significantly higher fuel economy,” said Mark Cooper, CFA’s director of research. “Many Americans struggle to live within their budgets, and a large majority are troubled about future gasoline prices.” (more…)

Over Half of New Vehicles Now Deliver at Least 23 MPG

One in nine now top 30 MPG, according to new study.

by on Apr.29, 2014

The Nissan Altima is one of a growing list of vehicles delivering better than 23 mpg - often more than 30 miles per gallon.

Despite the resurgence of full-size pickups, SUVs and muscle cars, American car buyers are getting better fuel economy than ever before, over half of the vehicles sold this year delivering over 23 mpg, according to a new study, with one in nine topping 30 mpg.

Even some traditional gas guzzlers are now yielding mileage once considered a stretch for small cars, industry and government data reveals, though automakers still face a stretch achieving the 54.5 mpg target facing them in 2025, observers warn.

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“This has been remarkable,” said Mark Cooper, research director for the Consumer Federation of America, which has been tracking fuel economy trends for over a decade.  After years of relatively stagnant mileage, the increased federal fuel economy rules passed in 2005 have been paying off, he said, calling it a “great example” of how industry can respond to mandates backed by public support.


Consumers Support 54.5 MPG CAFE, Says New Study

Motorists support 54.5 mpg proposal.

by on Jul.16, 2012

The typical 2025 model will have to offer even better mileage than the new Toyota Prius C, if proposed CAFE rules are enacted.

Despite the recent decline in fuel prices, American motorists still want significantly higher fuel economy from the cars and trucks they buy, according to a new study that found nearly nine in ten of those surveyed want the U.S. to reduce oil consumption while three in four support a proposed increase in the federal mileage standard to 54.5 mpg.

The new report by the Consumer Federation of America was not-so-coincidentally released just before the government is set to finalize a major — and still-controversial – increase in the Corporate Average Fuel Economy, or CAFE, standard. The Obama Administration says it plans to nearly double mandated mileage by 2025.

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“The 54.5 mpg by 2025 standard will be one of the most important consumer protection measures to be adopted in decades,” said Mark Cooper, Director of Research for CFA, an association of nearly 300 nonprofit consumer advocacy organizations across the country.