Auto insurance 'profiling' unfair
Geico re-entered the New Jersey auto insurance market in 2004, much to the delight of state insurance officials, who were getting tired of watching auto insurers flee the state because they couldn't turn a profit.
Now Geico and other insurers are under attack for using a customer's occupation and educational history to determine rates. Assemblyman Neil Cohen, D-Union, says he will introduce a bill banning the practice.
The state Department of Banking and Insurance says there's nothing wrong with using such factors as education and occupation in setting rates if the company can prove they correlate to losses. We disagree. Why should someone with a blue-collar job and a high school diploma have to pay higher premiums than someone with a white-collar job and a college degree if they have comparable driving records?
It isn't right. The law should be changed.
Now Geico and other insurers are under attack for using a customer's occupation and educational history to determine rates. Assemblyman Neil Cohen, D-Union, says he will introduce a bill banning the practice.
The state Department of Banking and Insurance says there's nothing wrong with using such factors as education and occupation in setting rates if the company can prove they correlate to losses. We disagree. Why should someone with a blue-collar job and a high school diploma have to pay higher premiums than someone with a white-collar job and a college degree if they have comparable driving records?
It isn't right. The law should be changed.
posted by Randy Bergmann at 11:51 AM
5 Comments:
who is the dept of banking & insurance looking out for?
the taxpayers or the insurance companies?
silly question.
Wonerfull little piece. Too bad it is not backed up with statistics.Before Cohen or any other person jumps the gun, we need a fair look at this issue. After all, over regulation from our leaders is a big part of the problem as to why so many companies leave/left the state to begin with. We can not allow emotion to dictate policy and law. We need a good cost/risk/ benefit approach to this.
and now some idiot New Jersey lawmaker wants to give drivers licenses to illegal aliens.
Forget about profiling people by jobs or income...I switched to Liberty Mutual from Geico, simply because I was paying too much. About $250 more per month! Yes, 15 minutes (on the phone with another insurance company) did save me a lot of money!
Great post. Thanks for sharing the information and making up such a nice blog. I love to read business blog and you made a nice one too. Good work !!
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