Insurance rates (blue collar vs. white collar)

Firecat · April 29th, 2006, 04:11 PM

http://news.yahoo.com/s/wkmg/20060428/lo_wkmg/3432770

Caught this on the local news last night. Thoughts?

Quote:

...In cities like New Orleans, car insurance is more than double for a custodian compared to someone with a law degree, the report said...

zenkidori · April 29th, 2006, 06:46 PM

It's not just Geico. I worked for Allstate and it's like this there as well. I imagine it's this way pretty much everywhere, which is bullshit. Bad drivers are bad drivers, good drivers are good drivers, it has nothing to do with your level of education or your job. One thing however, is that wealthier people sometimes don't report incidents and just pay for the damage out of pocket rather than having thier insurance go up, which is illegal BTW. But it can save the company some money.

ESPNSTI · April 29th, 2006, 07:20 PM

Don't they use all sorts of other (perhaps questionable) factors anyway? Like sex, the area you live in, etc...
Don't they just look at the correlation between statistics and those factors in order to determine what to tie the rates to, rather than moral or political views?

zenkidori · April 29th, 2006, 07:35 PM

yes and most of the time.

Firecat · April 29th, 2006, 08:04 PM

Quote:

Originally Posted by ESPNSTI

Don't they use all sorts of other (perhaps questionable) factors anyway? Like sex, the area you live in, etc...
Don't they just look at the correlation between statistics and those factors in order to determine what to tie the rates to, rather than moral or political views?

I'd think using gender as a factor would be illegal.

zenkidori · April 29th, 2006, 08:27 PM

It isn't, and they do use gender as a factor.

Firecat · April 29th, 2006, 09:01 PM

Hmmm....I find that surprising. I would have thought it would have been in the category as race (which I'm sure is illegal...)

images/smilies/unsure.gif

zenkidori · April 30th, 2006, 02:18 AM

I have never seen any racial profiling, but a male and female driver the same age with all the same factors will have different rates, with the male paying more, especially for younger drivers.

They do profile where you live, so if you live in a high crime area, you'll pay more. Many of those areas happen to have a majority population of minorities, so some people may see that as racial profiling, but the fact is your car is more likely to be stolen or damaged in those areas.

jayhawk · April 30th, 2006, 03:22 AM

Quote:

Originally Posted by ESPNSTI

Don't they use all sorts of other (perhaps questionable) factors anyway? Like sex, the area you live in, etc...

You are quite right. For example my wife pays less car insurance than I do. Now get this: she is 31 and has been driving for 2 1/2 years. I am 30 and have been driving for 14 years!

I used to live in DuPage County Il; now that I moved 2 miles and live 1 mile into Kane County IL my insurance went up. 1 stupid mile, but because most of Aurora is in Kane and West Aurora is rather dodgy (I live in East Aurora), I get to pay.

April 29th, 2006, 07:20 PM	#3
ESPNSTI Your Guide to TG/FG Joined: Dec 9th, 2003 Last Online: December 1st, 2008 Location: Decorah, IA Age: 36 Posts: 4,297 Car: 2004 Subaru Impreza WRX STI (USDM) LFS Status: Rep Power: 35	Don't they use all sorts of other (perhaps questionable) factors anyway? Like sex, the area you live in, etc... Don't they just look at the correlation between statistics and those factors in order to determine what to tie the rates to, rather than moral or political views? __________________ Top Gear Episode Guide (Excel) \| Top Gear Episode Guide (HTML) \| Top Gear Classic Episode Guide (HTML) Other Top Gear Guides \| Fifth Gear Guides \| Clarkson's TV/Video List \| Tiff Needell's TV/Video List

April 29th, 2006, 09:01 PM	#7
Firecat Politically Charged Joined: Mar 23rd, 2005 Last Online: 04:51 PM Posts: 3,614 Rep Power: 28	Hmmm....I find that surprising. I would have thought it would have been in the category as race (which I'm sure is illegal...) __________________

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April 29th, 2006, 06:46 PM	#2
zenkidori Banned For Trolling Joined: Jun 12th, 2005 Last Online: November 15th, 2007 Location: A mile high...and then some Posts: 4,809 Car: RX-7, Jeep Cherokee Rep Power: 0	It's not just Geico. I worked for Allstate and it's like this there as well. I imagine it's this way pretty much everywhere, which is bullshit. Bad drivers are bad drivers, good drivers are good drivers, it has nothing to do with your level of education or your job. One thing however, is that wealthier people sometimes don't report incidents and just pay for the damage out of pocket rather than having thier insurance go up, which is illegal BTW. But it can save the company some money.

April 29th, 2006, 07:35 PM	#4
zenkidori Banned For Trolling Joined: Jun 12th, 2005 Last Online: November 15th, 2007 Location: A mile high...and then some Posts: 4,809 Car: RX-7, Jeep Cherokee Rep Power: 0	yes and most of the time.

April 29th, 2006, 08:27 PM	#6
zenkidori Banned For Trolling Joined: Jun 12th, 2005 Last Online: November 15th, 2007 Location: A mile high...and then some Posts: 4,809 Car: RX-7, Jeep Cherokee Rep Power: 0	It isn't, and they do use gender as a factor.

April 30th, 2006, 02:18 AM	#8
zenkidori Banned For Trolling Joined: Jun 12th, 2005 Last Online: November 15th, 2007 Location: A mile high...and then some Posts: 4,809 Car: RX-7, Jeep Cherokee Rep Power: 0	I have never seen any racial profiling, but a male and female driver the same age with all the same factors will have different rates, with the male paying more, especially for younger drivers. They do profile where you live, so if you live in a high crime area, you'll pay more. Many of those areas happen to have a majority population of minorities, so some people may see that as racial profiling, but the fact is your car is more likely to be stolen or damaged in those areas.

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