Insurance by Zip Codes

[firetraq]

Originally Posted by Mathguy

I have read that it is still ALLOWED but cannot be the main determining factor.
It's an utterly retarded political grandstanding move that just re-arranges the deck chairs but isn't going to make things more fair and will certainly not save money in totality.

The winners if fully implemented would be zip codes with more theft, vandalism, less responsible drivers living in it. The losers would be from the other areas whose rates go up to pay for the winners lower premiums.

As for the Idiots with horrible driving records if that is given even more weight, they will either:
a) Go without insurance (but still drive and cause accidents). This is what happened in NJ, they have the highest rates in the US.
b) will be insured by the state mechanism at a subsidized rate (Care to guess who pays the subsidy?)

If you pay $1000 for auto insurance, the insurance company profit on that is going to be like $20-30 or so as a ballpark # to give you a sense of scope.

are you ****ing joking, if an insurance company charges you $1000 for a six months policy and you make no claims they effectively have made a 100% profit, clearly a small fraction goes to overhead and underwriters. Why do you think these companies are so enormous, AIG anyone.

[EscapeCalifornia]

Originally Posted by firetraq

are you ****ing joking, if an insurance company charges you $1000 for a six months policy and you make no claims they effectively have made a 100% profit, clearly a small fraction goes to overhead and underwriters. Why do you think these companies are so enormous, AIG anyone.

Or you could sign up for that 6 month policy, make your first payment of $200, and total your car costing them $20k. You clearly have no idea how insurance works.

[firetraq]

is there something wrong with your reading skills,

and you make no claims

[EscapeCalifornia]

Originally Posted by firetraq

is there something wrong with your reading skills,

Great job looking at one possible outcome and ignoring how things work in the real world. Go start an insurance company yourself its its such easy money all the time.

[ConsideringLA]

Originally Posted by EscapeCalifornia

Great job looking at one possible outcome and ignoring how things work in the real world. Go start an insurance company yourself its its such easy money all the time.

As a matter of fact, if you deposit $35k cash with the DMV (or post a bond) you can indeed self insure in California.

Here's the skinny direct from the state:
Insurance Requirements for Vehicle Registration

[firetraq]

Originally Posted by ConsideringLA

As a matter of fact, if you deposit $35k cash with the DMV (or post a bond) you can indeed self insure in California.

Here's the skinny direct from the state:
Insurance Requirements for Vehicle Registration

yeap i read that myself..... might even be worth it, if you left it there for life.

Originally Posted by EscapeCalifornia

Great job looking at one possible outcome and ignoring how things work in the real world. Go start an insurance company yourself its its such easy money all the time.

do you work for an insurance agency or something, because it sounds like you think they are hard done by, they are the ones that caused our financial crisis, and in the meantime made hand over fist in profits....

[sonarrat]

The practice is clearly alive and well. Up here in San Francisco, I can run quotes all day showing the difference between 94124 (Bayview, high crime area) and 94132 (Merced Manor, suburb-like family area). Same city. Doesn't matter which provider you try to run, if you park your car overnight in 94124 you will pay twice as much as if it was in 94132.

[ConsideringLA]

Originally Posted by firetraq

they are the ones that caused our financial crisis, and in the meantime made hand over fist in profits....

A company exists to make a profit. Don't blame a donkey for being an ass. It's the government that opened the door with the best of intentions by increasing homeownership into traditionally underserved areas -- and we backed it up via FNMA and FMAC, despite the OFHEO raising their eyebrows, our gov't simply let it all happen - and the entire subprime industry was born, with the AIG's of the world providing a vehicle for a traditonal product ("mortgage") to become an exotic one (option ARM, teaser rates, etc.) all by carving it up into pieces and packaging it as a security.

Yup, best of intentions - helping folks into a home - turned into a freaking debacle.

[firetraq]

Originally Posted by ConsideringLA

A company exists to make a profit. Don't blame a donkey for being an ass. It's the government that opened the door with the best of intentions by increasing homeownership into traditionally underserved areas -- and we backed it up via FNMA and FMAC, despite the OFHEO raising their eyebrows, our gov't simply let it all happen - and the entire subprime industry was born, with the AIG's of the world providing a vehicle for a traditonal product ("mortgage") to become an exotic one (option ARM, teaser rates, etc.) all by carving it up into pieces and packaging it as a security.

Yup, best of intentions - helping folks into a home - turned into a freaking debacle.

Totally agree, I heard that from NPR last week.