life insurance

There is a fundamental injustice of penalizing drivers of what's happening in your neighborhood. In a totally secure fair, it would be if each person is driving safely and avoid getting into accidents. People who go through life without making a claim would be rewarded with lower premiums. After all, if you pay your premiums on time every year, without having to make a claim, to build a great credit to the time your luck runs out. Except, life is not fair. Look around and see almost all states allow insurers to use ZIP codes as a key indicator when determining the premium rate. The result can be that good drivers pay more than bad drivers. Except in California, what it is.

If we look to 1988, voters in the Golden State has decided enough was enough and passed Proposition 103, which required insurers to establish the rates of safety record, years of driving experience and mileage. Needless to say, the local insurance companies were less happy and so great rearguard action had been affixed to slow implementation. It took until 2003 to give the Commissioner rules. It is estimated that Californians have saved billions of dollars.

So what is really happening? Well, insurance is all about risk estimates that an application. So when it comes to third party claims, liability may be based on the history of driver safety. Clash with another driver, hit someone on the sidewalk or not to avoid a tree that measures suddenly in front of you is how much you drive. But when it comes to global coverage, begin to speak not of things under their control. Take your time, for example. If you live in an area where tornadoes regularly search vehicles and parts distribution in neighboring counties, where flood waters or take and electrical systems and upholstery, do not blame the insurers the freedom to reflect local conditions. So why do we complain when the rate of theft and vandalism are high in your neighborhood?

Well, this is the stage of the debate is a little fuzzy. Some people pull in racial profiling, because a significant percentage of districts happen to have high concentrations of people of different races and ethnicities. Others argue that it is a form of tax based on where people live. This may be acceptable if the additional premium for an improvement in police work, but as it is, everything that happens is that people pay more and demand.

Nobody said that insurers should be quite accurate. In fact, there is an argument that insurance companies have the right to charge rates for automobile insurance where auto theft and vandalism is high. This is why California voters passed the proposal 103rd rate of car theft has always been high in California for decades. They are tired of seeing their car insurance quotes also increasing rapidly and are defended by the polls. Selfishness is a big motivator when it comes to money.