New Jersey Regulators: Jobs, Education Are Sound Criteria to Rate Drivers
East News • April 25, 2008
New Jersey insurers who use education and employment to rate drivers for risk are justified in doing so and the practice does not amount to racism or classism, according to a new, 581-page report ...
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Subject: RE: RE: Counter-intuitive
Posted On: April 28, 2008, 7:49 am CDT
Posted By: Stat Guy
Comment:
The FTC report also concluded that these factors are not a proxy for race but uneducated and/or uninformed people keep pushing to make insurance "fair" so that there are fewer pricing differences rather than more; in this way, they expect premiums to be almost identical for those in a particular geographic area; instead of allowing companies to compete with more pricing options, they want leveling. But when you look further, the result is that those who benefit from level rates are those with more risk; the better drivers subsidize those with less than stellar experience. Why should insurance rating be FAIR, as if someone who pays higher rates is being treated unfairly compared to someone who has a lousy driving record? We dumbed down the education system to make everyone feel good but that didn't help grades. Why should insurance be level at all? Why do any underwriting if the price is predetermined?
Subject: RE: RE: Counter-intuitive