Geography and Insurance Rates - January 14, 2009
Auto insurance as with any other insurance policy follows the same path, the higher the risk the higher the rate you pay for. Geographic location has long been a determining factor of the amount you pay for in your auto insurance that greatly differs for country folk. City’s have a higher accident rate than in country settings where vehicles are few and accidents rare. This is a target of a move by some lawmakers in certain US states that says it is a form of discrimination that should be eliminated.
As usual, insurance companies are countering their proposal due to the fact that insurance underwriting is a very exact science they know and any changes can have chaotic effects. Insurance companies experience relatively little control from the state except for the approval and accreditation sides of their operations. The move of many states to have a sort of oversight into their operations has strongly been opposed by the said companies for they say they know what they are doing and they know best. They might but with the unstable economy they might have to re-think their strategy so the world changes with the way they do business.
