A blind study offering carriers an applicant for State-mandated auto liability insurance -- no frills, mind you -- produced huge premium differences. The hypothetical auto insurance applicant in each case was a hypothetical widow with other personal factors that were held steady everywhere her application was submitted.
Premium offerings varied not just depending on locale, but on which carrier offered the mandated auto liability insurance coverage. One carrier never charged more to the same applicant in any place, while other carriers increased their premiums each according to its own reasons, from 3% more to 29% more. Why? We do not know. The carriers apparently would not explain beyond offering untrue platitudes about the costs of insurance while treating everyone 'equally,' which is clearly not the case.
And why does being a widow make such a big difference in her auto liability insurance premiums anyway?
Questions that we can ask about the price of auto liability premiums are suggested by Ann Carrns, "Your Money Adviser / The Curious Factors That Shape Premiums," p. B5, col. 1 (New York Times Nat'l ed., "Personal Business" Section, Saturday, August 8, 2015).
Please Read The Disclaimer. ©2015 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015). All Rights Reserved.
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