Why are auto insurance companies allowed to get away with such criminal practices?
Question by yelena castle: 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.
Best answer:
Answer by melia
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.
Try this site, if you want to find your best or cheapest auto insurance just in few minutes,
http://best-auto-insurance-usa.info/
Hope this help,
What do you think? Answer below!
Tags: Atlanta, auto insurance, Insurance Companies, suburban commuter
Because urban areas have a MUCH higher rate of stolen vehicles…especially Atlanta.
Statistics probably show that where you live now has a greater incidence of theft. Did you previously have a garage and now park on the street? There are a lot of things that go into calculating a premium.
I paid over $ 200 a month back in 1986 when I lived in Brooklyn for a 5 year old Honda and a 2 year old Toyota, the Toyota in a garage. I live in St. Louis County now, and my Mustang and his big old Mercury don’t cost that much in a year. If I moved back into the city and parked on the street again, I’d expect the premiums to go through the roof.
It’s actually very logical, if you know anything about the way that risk is calculated.
Living in a more crowded urban area, your car is more likely to be involved in an accident. So what you’re driving it less? There are more cars on the road in an urban area, and that increases the chances of your car being hit by another car or you hitting another car.
In addition, auto theft is higher in urban areas. Your rates have to be adjusted up to account for the additional risk.
These are the same reasons why your insurance might be higher in Atlanta than in a city like, say, Des Moines. The insurance company has to factor in things like population, crime rate, etc.