\”Did these fools bring up that non-minorities in these higher cost territories pay the same rates as minorities? Hmmmm?\”
Well actually no, white folks get their insurance from the cheaper \”whites only\” insurance companies but don\’t tell the brown folks, they might get offended or sue.(sarcasm)
Why do low-income zip codes (and low credit score households) average more claims per 100 car years? Because the only way for drivers to save on auto insurance is to give up insuring marginal cars (\”cream\”) and – despite the inconvenience – to share the cars kept insured. This causes the average miles and cost PER CAR for the pool to rise. When insurers detect this cost increase, they MUST raise premiums (or avoid the business). But this reaction just drives more marginal cars out of the pools and starts an adverse selection death spiral. For more discussion, see papers posted at http://www.centspermilenow.org.
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\”Did these fools bring up that non-minorities in these higher cost territories pay the same rates as minorities? Hmmmm?\”
Well actually no, white folks get their insurance from the cheaper \”whites only\” insurance companies but don\’t tell the brown folks, they might get offended or sue.(sarcasm)
I wonder if all the races make claims equally?
Why do low-income zip codes (and low credit score households) average more claims per 100 car years? Because the only way for drivers to save on auto insurance is to give up insuring marginal cars (\”cream\”) and – despite the inconvenience – to share the cars kept insured. This causes the average miles and cost PER CAR for the pool to rise. When insurers detect this cost increase, they MUST raise premiums (or avoid the business). But this reaction just drives more marginal cars out of the pools and starts an adverse selection death spiral. For more discussion, see papers posted at http://www.centspermilenow.org.