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.

Cowboy

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.

Entidtil

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".

Chickie

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

frank

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.

Fred

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!

Ask

insurance

Popular Q&A

How much should i sell my car for?
Hey. You're probably right that ?4800 is a bit steep, but anyone who was interested in that would try and get the price down so you should always put a price that's higher than you want to sell for i.e. ?4800 would probably sell for ?4400/4000. You car has a low insurance group, is economical...

Online Auto Insurance Quotes, are they really safe and accurate?
Hello Beth,In order to receive an accurate quote for auto insurance personal information such as address, date of birth, drivers license number, and social security number are required. This is exactly the information identity thieves need to destroy your financial credibility. Another concern...

Buying a used car and auto insurance?
You need to call and talk to an agent in the state that you will be living, since the policy will apply to the state where you live and the car will be "garaged" or parked.When you find the car you want, then call the agent up with the make/model/year plus have the VIN number. Most likely...

What car insurance company would be best for my situation?
I am not a fan of State Farm at all, but they ARE the biggest insurance company for a reason: their rates are competitive and their coverage and claims service are exemplary. The fact that your rate went up $15 is not surprising- everything has been going up in cost lately: groceries, clothing...

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...