The Consumer Federation of America did a mystery shopper review of several auto insurers and found that drivers with at-fault accidents paid lower premiums than drivers with spotless records -- provided that the careless driver was rich and well-educated and the careful driver was a single renter without an advanced degree.
Using two hypothetical characters the group compared premiums offered to two 30-year-old women. Both had driven for 10 years, lived on the same street in a middle-income Zip code and both wanted the minimum insurance required by whichever state the group was researching.
The imaginary woman who wasn’t married, rented a home, didn’t have coverage for 45 days but has never been in an accident or ticketed with a moving violation was compared to a married executive with a master’s degree who owns her home and has always had continuous insurance coverage. But she’d been in an accident (again, hypothetically) that was her fault and caused $800 in damage within the last three years.
The results were somewhat surprising, although there were differences across the five insurers. Farmers, GEICO and Progressive always gave a higher quote to the safer driver than the woman who’d caused an accident. Across all 12 cities in the study, State Farm offered the lowest or second lowest premiums.
“State insurance regulators should require auto insurers to explain why they believe factors such as education and income are better predictors of losses than are at-fault accidents,” said J. Robert Hunter, CFA’s director of insurance and former Texas insurance
Consumer Group: The Rich May Pay Less For Car Insurance Even If They’re Not Safe Drivers [Consumerist/Mary Beth Quirk]
LARGEST AUTO INSURERS FREQUENTLY CHARGE HIGHER
PREMIUMS TO SAFE DRIVERS THAN TO THOSE RESPONSIBLE FOR
ACCIDENTS (PDF) [Consumer Federation of America]
Francis Gurry, the fair-use hating, web-hating, North Korea embargo-breaking, witch-hunting, blackmailing head of the UN’s World Intellectual Property Organisation (WIPO) has a new pick to run copyright at the UN agency: Sylvie Forbin, a lobbyist for for French entertainment giant Vivendi.
CETA — the “Comprehensive Economic and Trade Agreement” is a secretly negotiated deal between Canada and the EU, mirroring many of the most controversial provisions in notorious deals like ACTA, TPP, and TTIP — including the “corporate sovereignty” clauses that permit multinational corporations to sue governments in closed courts, and force them to repeal environmental, […]
Nearly 2 weeks ago, 17 million Britons (mostly poor) voted to leave the EU in what amounted to a plebiscite on austerity, finance capitalism, and the widening gap between the increasingly wealthy and the increasingly poor. In response, the Conservative government says it will tempt corporations to come to the UK by making the rich […]
It’s no secret that technology is changing the way we all work—but it’s also transforming the way we play. The games of today look nothing like those of 10 or even 20 years ago: these days it’s all about mobile and 3D. And now you can learn to design 3D mobile games with the Intro to Unity 3D Game […]
Earbuds are fine for casual listening while you work out or run errands. But when you really want to experience music as it was intended, nothing beats a serious set of noise-canceling, soundscape-enhancing headphones.The REMXD On-Ear Bluetooth Headphones offer high-quality sound with complete wireless connectivity — and at just $35.99, this rechargeable set won’t even cut into […]
From self-driving cars to financial software to the recommendations you get on Amazon and Netflix, machine learning is at the core of modern technology—and its implications for future technology are staggering.And now, you can dive into the field of machine learning yourself with The Complete Machine Learning Bundle. This package of 10 courses includes 406 […]