Maybe Garamendi will be backed by digital camera manufacturers. They can create another industry (ala Vehicle Inspection Stations of the 90s and the VIN Hood Attachments for the Polaroid Camera).
We of course know that a good zoom will work, but he\’ll probably not listen to that reality either.
Unfortunately, we should all require honesty in our industry since so many agents and clients lie about their annual mileage and thereby cause actuarial data to be wrong. What we should require is validation of odometer readings at the time of the loss and a charge back
Even as the Automobile Club of California accepts Prop. 103 requirements on auto insurance rating, the industry\’s trade group continues to oppose and fight what is law for some 17 years. Why are insurers such knuclkleheads?
AAA will lower rates for about 85% of its insured automobile clients and my guess is they will continue to make a handsome profit. It\’s pretty clear that the industry continues to resist Prop 103 rating becuase the current residency based rating generates more premium for the carriers.
Let\’s be honest, its economic greed that motivates insurers and using zip codes as the primary rating factor makes more money for them. It also allows them to \’red line\’ vis-a-vis higher rates the urban and inner city areas with its often minority residents. All the \’reasons\’ they give for staying with the current unfair system are hogwash.
Now that mileage and driving experience will become the primary basis for rating automobile insurance, let\’s hope the next milestone will be to eliminate FICO scores in rating auto or any personal lines insurance. It\’s a discriminatory practice and insurers ought to be more enlightened now that we are in the 21st century. Unfortunately, the industry is always a few decades behind the times.
Unfortunately, there is a cost of living and wage difference in Northern and Southern California vs the Central Valley. They steal our water and now they want us to pay for their mistake of living in Northern or Southern California. I\’m sorry, but where you live does directly impact the amount at risk…not to mention the frequency and severity issues associated with claims. Hopefully logic wins over ignorance this time.
???Name me 1 company that uses FICO scores for auto insurance in California. Also, all the companies can lower their rates just as AAA has and still make a profit today, but what happens when the companies expense ratios go up in a hard market, the DOI will not grant them a rate increase, that is why they are not reducing rates. When you have Garamendi and his deputies that are against free enterprise, the companies will continue to be very careful with rate decreases. Garamendi is a politician and doesn\’t give a rats a.. about the consumer…he\’s a PR machine looking for votes…WAKE UP. Obviously a non-profit company like AAA that mainly writes business in rural areas of Southern Cal. can pull this off, especially when they have made a deal with Garamendi and his and their PR machines WAKE UP
FYI – all the Alliance is asking for mileage verification by an independent third party source and that the policyholder annually complete a renewal questionarie about their annual mileage and their commute distance to work. Oil change, smog certifications or repair receipts showing odometer readings would be acceptable. Does that sound unreasonable? If the commissioner would agree to that, all of the objections would go away.
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Maybe Garamendi will be backed by digital camera manufacturers. They can create another industry (ala Vehicle Inspection Stations of the 90s and the VIN Hood Attachments for the Polaroid Camera).
We of course know that a good zoom will work, but he\’ll probably not listen to that reality either.
Unfortunately, we should all require honesty in our industry since so many agents and clients lie about their annual mileage and thereby cause actuarial data to be wrong. What we should require is validation of odometer readings at the time of the loss and a charge back
Even as the Automobile Club of California accepts Prop. 103 requirements on auto insurance rating, the industry\’s trade group continues to oppose and fight what is law for some 17 years. Why are insurers such knuclkleheads?
AAA will lower rates for about 85% of its insured automobile clients and my guess is they will continue to make a handsome profit. It\’s pretty clear that the industry continues to resist Prop 103 rating becuase the current residency based rating generates more premium for the carriers.
Let\’s be honest, its economic greed that motivates insurers and using zip codes as the primary rating factor makes more money for them. It also allows them to \’red line\’ vis-a-vis higher rates the urban and inner city areas with its often minority residents. All the \’reasons\’ they give for staying with the current unfair system are hogwash.
Now that mileage and driving experience will become the primary basis for rating automobile insurance, let\’s hope the next milestone will be to eliminate FICO scores in rating auto or any personal lines insurance. It\’s a discriminatory practice and insurers ought to be more enlightened now that we are in the 21st century. Unfortunately, the industry is always a few decades behind the times.
Unfortunately, there is a cost of living and wage difference in Northern and Southern California vs the Central Valley. They steal our water and now they want us to pay for their mistake of living in Northern or Southern California. I\’m sorry, but where you live does directly impact the amount at risk…not to mention the frequency and severity issues associated with claims. Hopefully logic wins over ignorance this time.
???Name me 1 company that uses FICO scores for auto insurance in California. Also, all the companies can lower their rates just as AAA has and still make a profit today, but what happens when the companies expense ratios go up in a hard market, the DOI will not grant them a rate increase, that is why they are not reducing rates. When you have Garamendi and his deputies that are against free enterprise, the companies will continue to be very careful with rate decreases. Garamendi is a politician and doesn\’t give a rats a.. about the consumer…he\’s a PR machine looking for votes…WAKE UP. Obviously a non-profit company like AAA that mainly writes business in rural areas of Southern Cal. can pull this off, especially when they have made a deal with Garamendi and his and their PR machines WAKE UP
FYI – all the Alliance is asking for mileage verification by an independent third party source and that the policyholder annually complete a renewal questionarie about their annual mileage and their commute distance to work. Oil change, smog certifications or repair receipts showing odometer readings would be acceptable. Does that sound unreasonable? If the commissioner would agree to that, all of the objections would go away.