Posted on 03/09/2006 11:06:49 AM PST by kevinm13
Legislation was introduced in New Jersey Tuesday that would bar insurers from using drivers' education or profession in setting automobile-insurance-policy rates.
Assembly Deputy Speaker Neil M. Cohen, D-Union, introduced the bill in response to published reports that Geico of Washington, D.C., used such information in setting prices.
"I found out about this practice the same way everyone in New Jersey did -- by reading the newspaper," Cohen, chairman of the financial institutions and insurance committee, said. "And just like everyone else, I was outraged."
Cohen's bill, A-2819, would prohibit insurers from assigning less-favorable rates to drivers based on their education level and/or occupation. It would also prevent insurers from requiring any educational or occupational information as part of an application for coverage or continued coverage.
I'd like to find out. I know that Progressive is very leftie.
Yes, it is a wholly-owned subsidiary of Berkshire Hathaway (WB's holding company).
Insurance companies track huge amounts of data on people involved in crashes, and they learn that people who work in some jobs tend to have more accidents. They learn that on average people with a certain education level tend to have more accidents that people with a different education level.
They balance a lot of different factors based on what they know about someone and come up with rates for that person that they feel best represent the risk they are taking by insuring that person.
Education and occupation are far from the only factors they take into consideration. So picking out one person with a Ph. D that isn't a good driver and comparing them to yourself isn't a valid comparison to what they are doing.
However, if the insurance companies have real solid data that says that certain groups pose more risk than others, why shouldn't they be allowed to use that data? Why should other groups that pose less risk be forced to pay higher rates to help cover the costs of insuring the more risky people?
I imagine as soon as they get this passed, their next target will be Life Insurance companies.
"Does traffic school count as drivers ed?"
I have Geico. They do not accept drivers ed. You have to get A's in school. If you are homeschooled, you have to show them a standardized test that shows that the student is in the top 80%. I wish they WOULD accept drivers ed. I think a student who takes drivers ed has more of a chance of being a safe driver than someone who can make good grades.
I imagine insurance actuarians have nailed down these figures well, otherwise the insurance companies wouldn't bother. Since 9/11 haven't Americans suffered enough?
You can't fool actuaries.
Ironic that this come from the party that always touts education as the cure all.
True, but explain to me why life insurance companies have marketing campaigns targeting the Homosexual crowd.
True. I'm insured with an auto carrier that used to admit that it wanted "white collar" business. (Probably not PC to do that anymore.) It doesn't advertise and it usually accepts new insureds by referral from current insureds.
If you call them, the first question is "Who referred you?"
I don't get any satisfaction from the snob appeal but they've got excellent rates and last time I checked, Consumer Reports was rating them in the top three.
it's all in the odds
it's all in the odds
Probably, it is very expensive. I read that 50% get AIDS.
By the way, I think it is interesting how Peter Lewis of Progressive made his fortune. Like a predator, he set up Progressive for the pool of rejects and then charged them a fortune. In 1994, Progressive charged me $900/mo when State Farm dropped me. I got that changed as quickly as I could. Tell me again how dems look out for the little guy.
I won't argue that, but their commercials make my head explode!
FWIW, I took 15 minutes and went to GEICO.com for a rate check. They quoted me a rate at least 15% HIGHER than what I was paying.
According to a chat with an agent, it was do to my credit check, which still had some junk in it from the ex.
My only loan at this time is my mortgage which accounts for about 20% of my takehome pay.
Sounds like geckophopbia to me.
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