How can we change the law for auto insurance?

Question

I had to fight to get where I am now, I have insurance that I don't have to pay a crapload for. Why is it the law to have insurance? If we have a law for insurance, I think we should have laws regulating how insurance works. I could not get my own policy for a long time, I had to be under the same name as my dad. If I tried to get my own with the same company they said my insurance would go up $50 a day. They make it very hard to get what is required by law to have. They use statisics to tell you what kind of driver that you are not. I think there has to be some way to change the rules. Should make it either easier to get insurance since you have to have it or not make it a requirement at all.

Answer 1

You could move to New Hampshire, where you ONLY have to carry insurance if you've caused an accident.

If you want to change the law in your state, you'll have to petition your Congressman, or gather enough signatures to put it on the ballot for the next local election.

There ARE laws regulating how insurance works.

Rates work like this - they lump you into the category you fit - might be, 18 year old men, credit score under 600, one speeding ticket. Then they mathematically estimate out how much EVERYONE TOGETHER in this group will generate in claims payouts, and divide the amount of claims by the number of the group.

They do NOT try to predict what type of driver you are - they don't care. They ONLY care about how much they will have to pay out IN CLAIMS, for your group. They don't work on the scale of one person - it works under the "law of large numbers", which says, the more people in the group, the more accurately you can predict future losses.

It's EASY to get insurance in most states, it's just not always CHEAP, because people insist on only driving new cars, that are financed. If you paid cash for your a 6 year old family-type car (not a fancy Mustang or something "impressive" "cool" or "fast"), and didn't put collision coverage on it (ie, put your money where your mouth is, as far as being a safe driver), your insurance would be a fraction of what it is for a new, financed, hot shot car.

Answer 2

Changing the law to being optional is not practical at all. Think of all those that cause accidents & are running around uninsured. That means they guy hits you, causes damage & possible personal injury, & walks off scott-free with no liability! Sounds decent enough?! I will opt for that & not have to pay anything per month or per accident. It is not realistic.

And if you are paying an ADDITIONAL $50 per day, you are paying about $1500 a month! Just for 1 person? You must truly have the horrible driving record you say you dont, or they are just having some fun with you. I dont pay that much for 2 cars & drivers in a year! Are you dirving a Lambohrgini (sp?)?

The rates are based on a system that if you prove you are not part of a certain class, you will be eventually excluded from it. Than means that if you are in a high risk category, & you dont have any accidents or tickets, your rates should go down. You get the rewards in the rears, not ahead. You have to show that you are not risky to them, not just tell them you are not & have them believe it.

Its not realistic to tie your insurance to gas either. That way your risk is assesed by your gas milage. That doesnt seem fair. All the high risk people, will raise the cost of gas! What will be the incentive for safe driving? People with 3 DUIs, 8 parking violations, 3 times driving on the sidewalk, 5 red lights run, 12 speeding in a school zone, 7 at fault accidents, only penalty is a $20 fill up? What will your compensation be if you are hit? A free large coffee & a car wash voucher?

Insurance is very easy to get. Try watching TV & not seeing insurance companies advertise that they take drunk drivers. It may not be the cheapest to some, but it is available. Sounds to me that your insurance agent was trying to save you money by keeping you on your fathers plan.

Answer 3

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Answer 4

Every state has laws regarding insurance. They regulate both the forms (what is covered, what isn't) and the cost. I can't see your insurance being $50 per day unless you have a new car and a bad driving record. That means the cost would be $18,250 per year. What drives the cost are the claims paid for a certain group (age, sex), area (state, city or rural area), type of vehiclel (van, SUV, sports car, etc). The biggest payouts are for bodily injury claims. This to me has been driven by attorneys who advertise on TV all the time telling people to sue, sue, sue everyone. Think about how many policies are needed to make up only one $500,000 payout. That cost is only what is paid to the injured party. The company has to pay claiims adjusters (usually more than one - one for the property damage, one for the bodily injury, one for the medical payments), lawyers, etc. Then there is the cost to run the business - electric, heat, taxes on the buildings, support personnel - clerks, secretaries, IT people, etc. Add it up, it is a lot. While sometimes I don't agree with some of the rates, when it comes down to it, it is a business out to make some money. If you think about it, they don't make as much money as you think they do. They also have to have a certain amount of money in reserve (essentially money that sits in an account waiting to pay claims) based on the number of policies written, that CANNOT be touched other than to pay claims, so it is NOT lining pockets.
On another note - what about the oil companies making just a bit LESS profit!!!

Answer 5

Hi,

let me state first that I don't like insurance companies. However, the need for insurance cover is very real.

How often have you heard of people being injured, or their cars damaged, who then lose money because the offending driver was uninsured.

To give grudging due to the insurance companies the whole thing is down to risk assessment. If they (Insurance Company) look at you as a young driver they need to determine the possibility and liklihood of you having an accident while you are insured with them.

It is ALWAYS possible to get insurance, though if the risks are higher, the cost will be higher. Presumably your Dad is a reasonably careful driver? His Insurance Company knows that...they don't know that YOU are...hence the higher premiums.

As to the idea promoted with regard to the inclusion of insurance into the price of a gallon of gasoline? Which company would take THAT idea on? I wouldn't for sure.

It would need to be financed by the government in order for it to be in anyway usable and with the loss in government income through tax from the companies who presently sell insurance I don't think any government could even consider the idea.

Age, experience and a good driving record are the things that will eventually bring down your premiums to a more manageable level.

Good Luck,

BobSpain

Answer 6

You are asking 2 different questions.

First, I don't know where you live but in the U.S., insurance is HIGHLY regulated by each states Department of Insurance. They tell them what to do, when to do it, how to do it, and what happens if they don't.

Second, insurance premiums are based upon risk....you obviously are a higher risk than your parents. You're younger, less experienced in driving, and may or may not have tickets/accidents. And for the most parts, those statistics are right.

If you have a problem with insurance where you live, contact the insurance division of you state and take it up with them.

Answer 7

I cannot disagree with you, but insurance is highly regulated and needed. Personally, I woudl like to see Basic Liability Insurance for drivers be included in the cost of a gallon of gasoline. This way, if you buy gas, you are insured. The way we do it know, half the cities of Camden NJ and Philadephila PA are uninsured motorists. If it were included in the cost od a gallon of gas, then every car on the road woudl have at least basic liability. You could always go to the insurance companies for additional insurance if you wished.

Answer 8

There are laws that regulate insurance it is called the ISO, I think you should become an insurance agent that passion for insurance does run through everyones blood!!

Answer 9

If it was because you were a youthful driver it is because of your inexperience that cause high rates. Also, premiums may be lower under a parents policy because you are given discounts THEY are getting just by being on their policy.

Answer 10

insurance is not regulated its governmented meaning the government wont do anything about the outragous prices and cancelations for no reason or the fact that when insurance companies have to pay a claim they file bankruptsy because the government gets a kick back from the insurance companies