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California Insurers Charge Drivers in Black, Latino Neighborhoods More, Report Indicates

West News • December 20, 2005
Insurers charge good drivers living in California's predominantly African-American and Latino zip codes substantially more for automobile insurance than good drivers in predominantly white ...

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Subject: Zip code differences in claim rates per 100 car years

Posted On: December 21, 2005, 4:02 pm CST
Posted By: Patrick Butler
Comment:
Why do low-income zip codes (and low credit score households) average more claims per 100 car years? Because the only way for drivers to save on auto insurance is to give up insuring marginal cars ("cream") and - despite the inconvenience - to share the cars kept insured. This causes the average miles and cost PER CAR for the pool to rise. When insurers detect this cost increase, they MUST raise premiums (or avoid the business). But this reaction just drives more marginal cars out of the pools and starts an adverse selection death spiral. For more discussion, see papers posted at www.centspermilenow.org.
Subject Posted By Posted On
RE: Discriminatory Pricing Mark
Dec 21, 2005, 9:16 pm
RE: RE: Unbeleivable IndAgent
Dec 21, 2005, 9:14 pm
Zip code differences in claim rates per 100 car years Patrick Butler
Dec 21, 2005, 4:02 pm
RE: Unbeleivable Smittty
Dec 21, 2005, 2:26 pm
Discriminatory Pricing rolfneu
Dec 21, 2005, 1:44 pm
RE: Unbeleivable Mark
Dec 21, 2005, 1:32 pm
Unbeleivable IndAgent
Dec 21, 2005, 12:58 pm
RED LINING ZIP CODES SUSAN
Dec 21, 2005, 12:12 pm
Consumers Union Rob
Dec 21, 2005, 8:34 am
Redlining Mike
Dec 20, 2005, 4:56 pm
RE: RE: RE: Dumb Journalists Who Don't Know Squat About Rat Conspiracy Theory
Dec 20, 2005, 2:12 pm
RE: RE: Dumb Journalists Who Don't Know Squat About Rating Flawed comparison?
Dec 20, 2005, 2:08 pm
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