Why are auto insurance companies allowed to get away with such criminal practices?
Sunday, December 28th, 2008 at
1:14 am
Jesse M asked:
After moving into inner Atlanta because I’ve grown tired of a completely car dependent lifestyle, my auto insurance went from 70 dollars a month to nearly 160 based solely on my location.
After moving into inner Atlanta because I’ve grown tired of a completely car dependent lifestyle, my auto insurance went from 70 dollars a month to nearly 160 based solely on my location.
Not only is this unfair and stupid, it seems to me to defy logic. I would think the suburban commuter who is spending lots of time in his car every day is more prone to claims than me, who barely has a reason to use my car anymore.
Ridiculous.
Clarification: We’re talking state minimum coverage here, so I wasn’t covered for theft in the first place.
Tagged with: Moving • Reason • Stupid
Filed under: Car Insurance
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maybe higher claims due to theft, more cars on the road, cost of claims?
why do you think they ar criminal in nature?
cost for insurance is based upon risks and expected payouts.
The inner city has heavier traffic, and usually higher risk of theft. Companies keep records dating back decades, and do underwriting every year based on records of theft and accidents in every area of the country, on every model and year of vehicle sold, for all types of driving by all age groups with all different levels of insurance.
Just think how happy you would be if you moved from a high-risk area into a low-risk one, and had a premium decrease!
Take a close look at your policy to see which coverages went up. I’ll bet there was a big jump in comprehensive coverage, which covers theft. Also, metropolitan areas are almost always higher than suburban areas because of more congestion which causes more accidents. Insurance companies don’t just randomly pick rates for certain areas, they have to back it up with their claims data when filing their rates with the state insurance department. If you really feel this is criminal then file a complaint with your state insurance department. if they feel the increase is not justified they will investigate and if your company is really doing something wrong it will get rectified.
You simply don’t have a clue about the mathematical algorithms used by every insurer in the U.S. Living in insurance-hell Atlanta you’d be a total moron if you actually thought your exposure to risk went DOWN vs up. Want a real dose of reality? Move to New Jersey.. your preimums would triple.
Insurance rates are based largely on where you live/drive. They have determined (and probably correctly) that their risks for claims are higher there than where ever you lived/worked previously. BTW, I don’t particularly like insurance companies but surely you know that they are not practicing “Criminal practices”.