So this change will move the higher rates to the areas of the state with fewer automobiles and accidents, based solely on the fact that rural folk tend to drive more miles per year. Driving two miles in LA is much more dangerous than driving 200 out here in the sticks. I am lucky if I see 50 other cars on my entire 20 mile commute to work. I would almost have to intentionally hit one to have an accident (other than of my own vehicle, which would not bring in the long-tail liability which drives up auto rates).
If you live in a low risk area your prices will go up to subsidize those that live in high risk areas. Common sense tells you that driving a vehicle in a large city is much more risky than driving a car in a rural area.
What no one is saying is what is actually happening; it is election time and the politicians are pandering for votes. If you are a politician at the state level you can make a lot of urban voters happy with this plan. Garamendi is running for Lt. Governor. This issue comes center stage each time he runs for office. Alan.
I\’m just glad that I can say that I am FROM California and that I\’ve never had to sell insurance there. Hasn\’t any one ever told Garamendy that the rates are based on losses that have occurred and been caused by the persons living in that area code. The discounts and rates ARE based on and reflect the good driving of individual insureds but can only reflect the ability of other drivers based on the AREA they are living in. The area they are living in also affects the costs of the claim.
So this change will move the higher rates to the areas of the state with fewer automobiles and accidents, based solely on the fact that rural folk tend to drive more miles per year. Driving two miles in LA is much more dangerous than driving 200 out here in the sticks. I am lucky if I see 50 other cars on my entire 20 mile commute to work. I would almost have to intentionally hit one to have an accident (other than of my own vehicle, which would not bring in the long-tail liability which drives up auto rates).
If you live in a low risk area your prices will go up to subsidize those that live in high risk areas. Common sense tells you that driving a vehicle in a large city is much more risky than driving a car in a rural area.
What no one is saying is what is actually happening; it is election time and the politicians are pandering for votes. If you are a politician at the state level you can make a lot of urban voters happy with this plan. Garamendi is running for Lt. Governor. This issue comes center stage each time he runs for office. Alan.
I\’m just glad that I can say that I am FROM California and that I\’ve never had to sell insurance there. Hasn\’t any one ever told Garamendy that the rates are based on losses that have occurred and been caused by the persons living in that area code. The discounts and rates ARE based on and reflect the good driving of individual insureds but can only reflect the ability of other drivers based on the AREA they are living in. The area they are living in also affects the costs of the claim.
This has absolutely nothing to do with insurance – and everything to with Socialism.