Posted On: December 27, 2005, 1:21 pm CST

Posted By: LA Foley

If the carriers can offer proof that zip code factors affect the possibility of loss, then why can't that factor be used to determine rates? What Garamendi really wants is for the good risks to subsidize the less-than-desirable risks...does he next want to regulate housing prices so that the less desirable zip codes pay the same as the more desirable zip codes? Of course not...that would be unfair, and interfere with the market setting pricing. Well, let insurance companies do the same. If a zip code produces disproportinate losses, then it should be surcharged. If it produces better than expected loss ration, it should be rewarded. Nothing more, and nothing less. Where you live can affect your losses as much, if not more, than your driving experience or miles driven. How Garamendi doesn't see that is beyond me, but he is a politician, so that likely explains it all.