Date: Tue, 27 Jun 2006 00:53:51 +0000 (UTC) From: Craig's Saab C900 Site <c900nospam.apana.org.au> Subject: Re: Crazy Saab insurance prices in Minnesota
"Jonathan Kaplan" <insure10nospamo.com> writes: >Unfortunately in NJ almost all the companies are now using credit based >rating. Once the state allowed Geico and Mercury to do it, everyone else >followed. Lets hope that doesn't start to happen here or there will be masses of people who cannot afford insurance for their house, car, etc. I think it's rather offensive for a company to say I'd have to pay a higher premium because I might have missed a mortage payment now and then, or had a credit card account go over the limit and unpaid for a period of time. Why charge more for insurance in those cases when it doubles the problem for the person wanting to take out the insurance! But it's all based on risk modelling, and I expect (to divert from Saab issues for a moment) that it's mainly due to the way BASEL-II is changing the way financial companies do their risk analysis. In the end it'll hurt the economy because it'll make people stop using cars and that means reduced government revenues, reduced income for oil companies, reduced sales of new cars, more mechanics closing down, etc. And it will ensure that the wedge between people with limitless funds and those who have very little will get bigger and the wealth concentration will grow. Regards, Craig. -- Craig's Saab C900 Page at | Craig's Classic Saab Workshop - Sydney .au http://lios.apana.org.au/~c900 | http://www.classicsaab.net and other URL's Email: c900nospam.apana.org.au | For Saab 99/C900/9000 Enthusiasts World-Wide! Alternate: saabonautnospaml.com | Web-forums, galleries, library, links, etc.
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