Why are auto insurance companies allowed to get away with such criminal practices?

Why are auto insurance companies allowed to get away with such criminal practices?

After moving into inner Atlanta because I'-ve grown tired of a completely car dependent lifestyle, my auto insurance went from 70 dollars a month to nearly 160 based solely on my location.Not only is this unfair and stupid, it seems to me to defy logic. I would think the suburban commuter who is spending lots of time in his car every day is more prone to claims than me, who barely has a reason to use my car anymore.Ridiculous.


You simply don't have a clue about the mathematical algorithms used by every insurer in the U.S. Living in insurance-hell Atlanta you'd be a total moron if you actually thought your exposure to risk went DOWN vs up. Want a real dose of reality? Move to New Jersey.. your preimums would triple.


Insurance rates are based largely on where you live/drive. They have determined (and probably correctly) that their risks for claims are higher there than where ever you lived/worked previously. BTW, I don't particularly like insurance companies but surely you know that they are not practicing "Criminal practices".


Take a close look at your policy to see which coverages went up. I'll bet there was a big jump in comprehensive coverage, which covers theft. Also, metropolitan areas are almost always higher than suburban areas because of more congestion which causes more accidents. Insurance companies don't just randomly pick rates for certain areas, they have to back it up with their claims data when filing their rates with the state insurance department. If you really feel this is criminal then file a complaint with your state insurance department. if they feel the increase is not justified they will investigate and if your company is really doing something wrong it will get rectified.Source(s):Insurance agent for 10 years


maybe higher claims due to theft, more cars on the road, cost of claims?why do you think they ar criminal in nature?cost for insurance is based upon risks and expected payouts.


The inner city has heavier traffic, and usually higher risk of theft. Companies keep records dating back decades, and do underwriting every year based on records of theft and accidents in every area of the country, on every model and year of vehicle sold, for all types of driving by all age groups with all different levels of insurance.Just think how happy you would be if you moved from a high-risk area into a low-risk one, and had a premium decrease!



Popular Q&A

What is the cheapest car insurance company?
It really depends on the customer. If you have some incidents on your record, or are a driver under 25, try Safeco, Progressive or Nationwide. If you are older, or a young driver with a clean record, try The Hartford, AIG, Allstate, State Farm, Liberty Mutual. Most all of the companies will...

I have auto insurance with usaa and I wish to change the day my automatic payment is made. But I see no option?
If you're dealing with USAA, I think you need to reconsider having them as your insurance company. There's a horror story floating around about how they scam their customers, you should take a look at it before you continue using them. http://autoinsurancefreepricequotes.com/…Good luck, I hope...

Do you think Obama has been a good president?
Yes, especially considering the situation he took over. But even with that aside, he has done so much to help Americans. One personal example: My family recently received notice in the mail that we'll be getting a partial refund on our health insurance premiums because Anthem Blue Cross (CA)...

Should i have my g2 licence for sure to get my auto insurance?
With insurance your G1 is considered a learners permit. Obviously you know that you can only operate a vehicle with a fully licensed driver with you. A lot of online quoting systems are geared towards the norm so when you attempt to get a quote online and mention the G1 is it not configured...

Does anyone know any cheap auto insurance company in Toronto?
There is no one insurance company that is going to be the best in every situation. You will have to shop around and see what can be done. You should contact several insurance brokers in your area and see what they can offer as they work with several insurance companies.