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| *Loan,banking and credit>>>state insurance |
If your State makes it Law to have auto insurance,, then don't you think it should be a flat rate for ALL* |
Of course Driving record may be THE ONE FACTOR for increase ! but not your credit score or the color of your car..or how many doors your car has,, come on this needs to be changed ! No. Why should Grandma with no tickets, no accidents, good credit and driving a 10 year old Ford be charged the same as Uncle Joe with 2 tickets, 2 accidents, poor credit and driving a new Mercedes? The answer is she shouldn't, and that's why the current system works. As another answerer stated, car color has nothing to do with insurance premium cost...it is an urban legend. Statistically, there have been studies conducted that prove people with good credit are more responsible in general and, therefore, tend to be better drivers and less accident prone than someone with poor credit. Source(s): State Licensed Automobile Insurance Adjuster, 16+ Years Experience No Your driving record definitely needs to be a factor, and the value of your car (how much they will have to pay to fix it) and the size of your vehicle (how much damage you will do to someone else, and how ofter accidents happen in your area (narrow streets, rude people, higher traffic, etc) No. Why should I pay for the person who speeds and has accidents? In a flat rate situation, I would. Why should I pay the same price for a 1991 Buick LeSabre as someone else pays for their 2007 BMW? In a flat rate situation, I would. I could go on, but you get the point. Insurance companies analyze accident statistics to make risk/actuarial tables and these are used to set rates. It's not fair to charge a good driver with a brightly colored 4-door sedan and a good payment history the same as a young new driver in a dark colored sports car and a poor payment history. The latter is a higher risk and insurance companies stay in business by charging more to higher-risk customers and attracting good drivers by passing on savings. A flat rate for all means good drivers with low-risk vehicles subsidize bad drivers with high-risk vehicles. What's the incentive then for making wise choices in regards to what we purchase and drive? Why should the insurance rates be the same for a black Porsche 911 and a white Toyota Camry? Or between someone with a long history of not paying their insurance bill on time compared to someone who meticulously handles their finances well? Or a student who gets D's and F's and a straight-A student? There is some debate on the issue of color and visibility, but have you noticed how fire engines are now painted bright yellow instead of red? That was in response to a visibility study that was done many years ago. These things statistically figure into the risk equation. Perhaps when you get older, drive something different or when your credit score improves, you'll feel different about this... I disagree. Credit score, if you pay your bills on time - you are less likely to be in an accident. Color of car has no play with insurance. Urban legend.. #Doors you have define how safe the vehicle is - the safer it is, the less medical bills you have... Try again... The major reason that insurance companies run credit scores is that there is a dirrect corelation between poor or poorer credit and accident frequency. Actuaries have been studying it for many years and there is an astonishing connection between poor credit and accidents. The problem that arises with insurance rates is that most people don't understand that the basic principle of insurance is to "spread the losses of a few among many" so in order for a company to payout they need to charge an appropriate premium for the potential risk. It doesn't always seem fair (I have bad credit) but from a basic business practice. Insurance companies couldn't charge me the same as you because if you have good credit then potentialy you are a lower risk. And if you are a lower risk, you wouldn't want to pay the same as me. Beleive it or not insurance companies are paying very close attention to matching price to risk in order to offer the best rates possible but it is something that at times can seem unfair. In Canada law states that an insurer cannot use credit score for rating purposes, but in Canada insurance rates are grossly high. |
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