Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Study questions insurance industry's 'risk' calculation when setting rates
Drivers in predominantly black neighborhoods in four states paid an average of 30% more to insure their cars than those in white neighborhoods, a new study finds. While it has long been known that African Americans pay more to keep their cars on the road, the analysis conducted by ProPublica and Consumer Reports questioned the insurance industry's contention that premiums for liability insurance are determined by risk of accidents.
Study questions insurance industry's 'risk' calculation when setting rates
Drivers in predominantly black neighborhoods in four states paid an average of 30% more to insure their cars than those in white neighborhoods, a new study finds. While it has long been known that African Americans pay more to keep their cars on the road, the analysis conducted by ProPublica and Consumer Reports questioned the insurance industry's contention that premiums for liability insurance are determined by risk of accidents.
Study questions insurance industry's 'risk' calculation when setting rates
Drivers in predominantly black neighborhoods in four states paid an average of 30% more to insure their cars than those in white neighborhoods, a new study finds. While it has long been known that African Americans pay more to keep their cars on the road, the analysis conducted by ProPublica and Consumer Reports questioned the insurance industry's contention that premiums for liability insurance are determined by risk of accidents.
One would have to compare the rates with similar (black or white) drivers in neighborhoods that are not predominantly black.
THEN, perhaps, the statistic would have meaning.
Drivers who live downtown probably pay higher premiums than I do, living 5 miles outside the City Limits. The statistical probability of them having an accident is much higher.
Higher crime neighborhoods incur more loses.Insurance co's employ actuaries to determine risk. No controversy what-so-ever, just good business practice.
You live in a high crime area your rates will obviously be higher. Never knew that was a mystery.
The article was taking about liability insurance not theft or even collision. So the question is are there more accidents in poor areas or do they lead to more lawsuits with higher payouts?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
