That's why I am so hurt and disillusioned by AmeriKa.
The whole society and its alleged values are a lie.
And yet they have the American people eating shit out of the palm of their hand.
Isn't it enough that you are getting gouged at the gas pump, too?
Now the insurance companies gonna do a little zinger up your anal canal, too?
"Motorists' records may be underrated"
"by Jeffrey Krasner, Globe Staff | February 28, 2008
A 27-year-old single woman with a perfect driving record could see her insurance premium increase an average of 5.2 percent this year, while an older married couple who each had major at-fault accidents every three years could have their premiums decrease by nearly 14 percent under the state's new competitive auto insurance system, which takes effect April 1, according to two consumer groups that analyzed rates.
The potential unintended consequence of the new system is the result of a rate-setting process in which a motorist's driving record is not given as much weight as credit rating, marital status, or other factors unrelated to driving, according to a study to be released today by the Massachusetts Public Interest Research Group and the Center for Insurance Research.
"Under this new system, how you drive is less important than who you are," said Stephen D'Amato, a consultant to the Center for Insurance Research.
Deirdre Cummings of MassPIRG added, "The rich, terrible drivers make out better under this plan than the good, poor drivers."
This state sucks!!! I'm a resident, and it stinks!!!
Massachusetts is switching from a 30-year-old system under which auto rates were set by the Division of Insurance. Under the new system, called managed competition, insurers will set their own rates subject to division oversight. Because rates were previously set by the state, there were only minor price variations between companies, and little incentive for drivers to shop around.
That is expected to change. Managed competition will generate a 7.8 percent overall reduction in rates, according to the state. It will also likely attract a number of new auto insurers to Massachusetts, increasing competition and leading to even lower rates. Earlier this week, Progressive Insurance of Ohio, the third-largest US auto insurer, said it would begin selling policies in Massachusetts in May.
Auto insurers have begun sending renewal notices to drivers whose policies expire in April. The state has set up a website, autoratecompare.doi.state.ma.us, that allows drivers to get an estimate of the range of premiums companies will offer.
Throughout the overhaul process, consumer advocates including Attorney General Martha Coakley argued that the new system lacks some safeguards to ensure pricing is fair. At the center of the debate is whether insurers can use socioeconomic factors - such as age, income, credit, marital status, or home ownership - in determining rates. In the new rules, Insurance Commissioner Nonnie S. Burnes prohibited the use of such demographic and financial information for rate-setting. A motorists' driving records is supposed to be the biggest consideration in figuring how much they will pay.
WTF do those things have to do with your driving record?
I mean, how far does this government and its corporate fascistas have to crawl up our asses, readers?
Why don't they just go condo in there?
Pfffffffffttttt!
But the report being released today asserts that insurers are using such information extensively to decide which drivers qualify for hefty discounts. Instead of openly using credit scores or income information, however, they are using other factors that effectively substitute for the prohibited data, according to the report.
For instance, homeowners who buy hazard insurance from Commerce Insurance Co. will qualify for a 5 percent discount. D'Amato says that since those who buy hazard insurance are almost all homeowners, they are likely to have higher incomes and better credit scores than those who do not purchase home insurance.
Several firms also take into account how many years a driver has been licensed in calculating discounts. There is a strong correlation between the number of years a driver has been licensed and age - a prohibited factor.
"It's time for everyone to stop pretending that the new system emphasizes driving record and ignores socioeconomic status," said D'Amato. "If they wanted to allow use of these factors, I'd still fight it, but at least they would be honest about what they're doing."
Kimberly Haberlin, a spokeswoman for the division, called the report "baseless and misleading." In a statement, she said, "The Division has reviewed all company filings to certify that rates are fair and that drivers' premiums are based on how well they drive and not who they are. The fundamental premise of this report is flawed."
James T. Harrington, executive director of the Massachusetts Insurance Federation Inc., an industry group that has pushed for the new system, said, "The authors of this paper have been antagonistic to reform since Day One, and this is just an eleventh-hour attempt to discredit managed competition."
The dispute hinges on some of the arcane details of the insurance business. Industry officials say there's a difference between rates and discounts. To determine rates, insurers use complex sets of data to determine how much they should charge for a particular type of coverage, such as accidental damage to another vehicle. Insurers then apply discounts to the rates. Some insurers now offer discounts for drivers of hybrid vehicles, those with multiple cars, and those who insure a child who is a student earning "good grades."
Consumer advocates claim it is hypocritical to prohibit the use of certain factors in setting rates, and then permit them to be used in offering discounts.
"Whether you use the discriminatory factors for rates or discounts, the impact is the same," said Cummings."
