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 subject matter should I include in a demand letter for disclosure of policy limits?
When I was an adjuster with the Auto Club it was company policy to simply disclose the policy limits to a claimant whenever they requested it.Maybe things have changed, but you might try calling and asking before you get tough with them unnecessarily.

Does the state of Maryland compensate for damages caused by a deer accident?
It depends if the road is governed by the state or local authorities. In most cases you have to report it immediately to the police so they can write up an accident report. If it's a state road, you should be able to appeal to the state. If it's a local road, the city or town might offer...

How much is car insurance in Vancouver, BC Canada?
Car insurance is kind of expensive in Vancouver. You pretty much have to get it through The Insurance Corporation of British Columbia (ICBC).Their rates are based on past driving records, year, make, model of car, how much you drive it, etc... If you are moving from another province or country...

How can I get auto insurance for a car not in my name?
Hey I just recently had this same issue the car not being in your name is not a problem!!! I have 21st century insurance!!! I love them!

How much should I expect my auto insurance premium to decrease when I turn 25?
that premium is much too high. my wife and i only pay a total of 250 per six months and we are 23 and 22. check with other agents/companies and see what you can get.as for percentage deduction, mine dropped 10% at 23. who knows what it will cut in a couple years.