Blue Mass Group

Reality-based commentary on politics.

Everybody knows

By

Hi All:

This week on Fox 25, A.G. Martha Coakley was speaking about the new auto insurance rating system that will go into effect on 4/1/2008.

Its’ main system to rate drivers in the Commonwealth will be based on a credit score.

What someone’s credit rating has to do with their driving record is beyond me. It is another terrible way to make the poor stay poor, and for the rich to get richer.  

Credit to Don Henley for the last line.

Respectfully Submitted,

Sincerely,

Wayne Wilson

Roslindale

P.S. Has anyone heard of any new auto insurance companies clammering to get business in Massachusetts? GEICO, AIG, Allstate and Progressive which are over advertised here in Massachusetts will not insure anyone here.

Please share widely!
fb-share-icon
Tweet
0

Comments

  2. that we will have some new options within a few months.

    <

    p>And, I don’t see why insurance rates need to be linked so directly with a driving record.  The driving record isn’t what is being insured, the possibility of a claim is being insured.

    <

    p>That means that if your window is smashed twice a month, or if you are likely to be hit by an uninsured motorist, or if the car is likely not to be well maintained, you should pay more, regardless of your driving record, because you cost more.

    <

    p>Does that make owning a car a lot more expensive in urban areas?  Yes.  But don’t you people perpetually rail about encoraging people to use the T?

    • If you cause an accident by careless driving, it is thus your fault.  It will be your insurance company paying the other party.  Yes, the other factors need to be taken into account also, but I really don’t get why some non-driving factors such as income or credit score rae used.

      • They just use other factors as well.

        <

        p>They need you to pay enough so they make money on average, but not so much that you’re likely to leave for a competitor that will settle for less profit.

        <

        p>So actuaries assess your risk of causing a claim.  Not your risk of causing an accident.  Your risk of causing a claim, whether for an accident or otherwise.  The more information the actuaries can use, the better they can make a statistical prediction about the likelihood of a claim on your policy.  The better the prediction, the cheaper your rate, and the better the chances that the insurer continues to exist.

        <

        p>Massachusetts insurance has typically been unable to actualy assess risk.  So, they have to over-rely on accident records, which is why Mass drivers get swatted with a giant surcharge after an accident.  Ever see the Allstate ad about “accident forgiveness”?  They can do that because the original risk assessment was better.

        <

        p>I never understand the outrage about this.  They should be able to use any information that can be gleaned about a driver: age, sex, credit, income, education, garaging address, where you shop for groceries, how often you shop for groceries, health status if known, anything.  Anything that is, except for the limited list of forbidden categories for anyone other than the government: race, religion, sexual orientation.

        • Again, what someones credit history has to do with their risk of liability for an insurer escapes me. It is another situation just like health insurance coverage. Screw the little guy, and let the corporations have their way and make big bucks on the backs of the working poor.

          <

          p>Sincerely,
          Wayne Wilson
          Roslindale

  3. Was it Patrick’s lavish ball sponsored by the insurance industry?

    <

    p>The scam of “Fairness for Good Drivers” appeared to go away yet all of the Satanicness of this new insurance “reform” appears to have escaped me.

    <

    p>Yes, only the rich will be allowed to drive!

    • If you have good credit, you’ll pay less. Almost all auto insurers — including the top five — pull your credit report. Why? Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. Insurers also know that if you pay your bills in a timely fashion and have had the same credit accounts for a long time, you’re more stable than someone who pays late and frequently opens and closes accounts. They use this information to create your “insurance risk score,” which is one factor that determines your auto-insurance rate. Totally ASSININE!!!

      <

      p>Sincerely,
      Wayne Wilson
      Roslindale

Archives