Comments on: Taking Aim at Auto Insurers http://www.frumforum.com/taking-aim-at-auto-insurers Building a conservatism that can win again Thu, 18 Mar 2010 01:18:00 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: sinz54 http://www.frumforum.com/taking-aim-at-auto-insurers/comment-page-1#comment-74819 sinz54 Tue, 01 Dec 2009 15:01:01 +0000 http://www.frumforum.com/?p=17036#comment-74819 KL7212: The point is that rates for comprehensive insurance vary according to where you live. If you live in Somerville MA, which has a high rate of auto theft, you pay more. If you live in western MA, you likely pay less. And that's as it should be. The controversy over DNA is that health insurers can end up charging you a higher premium for conditions you were born with, conditions you had no choice in. But you always have a choice where you choose to live. If you choose to live in a high-crime area, the rest of society shouldn't subsidize your choice. KL7212:
The point is that rates for comprehensive insurance vary according to where you live.

If you live in Somerville MA, which has a high rate of auto theft, you pay more.

If you live in western MA, you likely pay less.

And that’s as it should be. The controversy over DNA is that health insurers can end up charging you a higher premium for conditions you were born with, conditions you had no choice in. But you always have a choice where you choose to live. If you choose to live in a high-crime area, the rest of society shouldn’t subsidize your choice.

]]> By: KL7212 http://www.frumforum.com/taking-aim-at-auto-insurers/comment-page-1#comment-74703 KL7212 Mon, 30 Nov 2009 22:04:40 +0000 http://www.frumforum.com/?p=17036#comment-74703 Actually, there are several reasons why Massachusetts has high insurance rates, the chief ones being its high accident rate and its regulatory enviroment (which has improved somewhat in the last two years). Other factors include high population density (see also: high accident rate) and its level of per capita wealth relative to most other states; Massachusetts drivers tend to be wealthier than the residents of most states. As a result, their vehicles tend to be newer and/or more expensive than those of drivers in most other states. The rates for comprehensive coverage (theft, non-collision, weather damage, etc.) are actually quite reasonable in Mass. There are plenty of states with much higher rates of auto theft. Comprehensive insurance is relatively cheap to provide and does not make up the bulk of the typical full coverage auto insurance policy. Actually, there are several reasons why Massachusetts has high insurance rates, the chief ones being its high accident rate and its regulatory enviroment (which has improved somewhat in the last two years). Other factors include high population density (see also: high accident rate) and its level of per capita wealth relative to most other states; Massachusetts drivers tend to be wealthier than the residents of most states. As a result, their vehicles tend to be newer and/or more expensive than those of drivers in most other states.

The rates for comprehensive coverage (theft, non-collision, weather damage, etc.) are actually quite reasonable in Mass. There are plenty of states with much higher rates of auto theft. Comprehensive insurance is relatively cheap to provide and does not make up the bulk of the typical full coverage auto insurance policy.

]]> By: sinz54 http://www.frumforum.com/taking-aim-at-auto-insurers/comment-page-1#comment-74672 sinz54 Mon, 30 Nov 2009 20:49:56 +0000 http://www.frumforum.com/?p=17036#comment-74672 "The Michigan Board of Canvassers approved ballot language on Monday for a petition brought forward by the group Fair Affordable Insurance Rates (FAIR) that will require insurance companies to base the rate they charge you for insurance on the type of car you own and your driving record, not where you live" How insane. A big reason why auto insurance premiums are high in both Michigan and Massachusetts is the staggeringly high rate of auto theft in those states. Treat those states the same as low-theft states and you guarantee that insurers won't want to sell policies there. Or they'll be forced to raise rates in low-theft states. “The Michigan Board of Canvassers approved ballot language on Monday for a petition brought forward by the group Fair Affordable Insurance Rates (FAIR) that will require insurance companies to base the rate they charge you for insurance on the type of car you own and your driving record, not where you live”

How insane.

A big reason why auto insurance premiums are high in both Michigan and Massachusetts is the staggeringly high rate of auto theft in those states. Treat those states the same as low-theft states and you guarantee that insurers won’t want to sell policies there. Or they’ll be forced to raise rates in low-theft states.

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