“White Privilege” in Auto Insurance

[vic120]

IMO it is the constant barrage of articles with this type of false causation and false assumptions that are the root of all the discord we see in the news these days

Common any one in insurance knows the risk factors in these area's are much higher and Insurance is based on risk not race

However the non Insurance agent people reading these articles are getting angry. Yet they keep pumping this stuff out like a hot commodity

Then we turn on the news and there is all this anger and violence.

 

[agentinsouth]

Good drivers in black communities pay more – a LOT more – for auto insurance than good drivers in white communities, even when things like income and population density remained the same. This according to research from the Consumer Federation of America (link below). If your neighborhood is 75% black or higher, you can expect to pay 70% more for auto insurance. The fictional white woman in the study would supposedly pay just $622 annually for auto insurance while the fictional black woman would pay $1,060. Ever run up against anger from someone who complains that they are being quoted a higher rate because of their race? If so, how do you respond? Insurance Forums | Black Americans pay over $1,300 more per year for auto coverage compared to white drivers

Soooo... What I read was areas w/ high theft rates and high property damage loss ratios have higher premiums.... Shocking I know.

 

[ncaggie]

I tell them all the time, its based on where you live. Then I go on to talk about how bad all the accidents are there in the winter and stolen cars, no off street parking, etc. You have bad winters and a rear wheel drive car.

My black customers, not all but a lot, bad credit, not a home owner, not married, not educated, single parent household strapped for cash, always late, jumps from company to company, lots of towing and comp claims, drives around with bad brakes and bald tires in January, no bank account for EFT, buy here pay here crap cars, the worst are the 40 year olds just moved here from NYC and have never driven and just don't know the rules of the road, then there are all the people who let their license expire or suspended for not paying a ticket and need to start all over.

Its a fact the poor over pay for everything, check cashing fees, pay-day loans, pawn shops, buy here pay here, rent a center furniture, fees for pre-paid debit cards, higher costs in groceries and the general effects of having bad credit. This does not discriminate, black or white you are $%**!!

White customers buy cars to impress neighbors they don't like, maxed out credit, married on paper but separated, also don't maintain their cars.

 

[agentinsouth]

White customers buy cars to impress neighbors they don't like, maxed out credit, married on paper but separated, also don't maintain their cars.

I don't know who your trashy friends are, but my LR4 is always immaculately taken care of.

 

[YouGotMyMoney]

White customers buy cars to impress neighbors they don't like, maxed out credit, married on paper but separated, also don't maintain their cars.

you mean people not white people fool.

everyone buys a car to impress someone else

everyone has maxed out credit, especially minorities in the inner cities (>% of blacks)...payday loans + rent a center furniture + buy here pay here car lots?

black folks have a smaller marriage % than any other ethnicity

 

[goillini52]

White customers buy cars to impress neighbors they don't like, maxed out credit, married on paper but separated, also don't maintain their cars.

Well now, that's a racist comment. Are you the black version of BCrane?

 

[bobson]

How can insurance premiums depend on the race of a person?

Why else would companies ask that on the application? (They don't.)

 

[thebutcher]

Hey OP, does this qualify as an excuse to start urban riots. I suppose so, there are Black riots in response to thugs being shot after they rob gas stations and 7/11'S so why not have the riots of 2018 to bring down the racist car insurance companies.

It worked out real well a few years ago in the real estate market, judging that Blacks were being discriminated against (when they weren't) and mandating housing loans for low income Black families lead to the housing crash. Not that anyone was held accountable, well no one except for the housing finance companies that were accused of racism for doing what they were mandated to do, give low income Black families mortgages they couldn't afford.

I wish these arguments could just be settled the old fashioned way before things became way too civilized. We need to see how these pansy lefty race baiters can defend their policies and principles on the field of battle, put the debate aside and let good and evil fight it out. No wonder why they also want to take guns away, yeah they think gun rights are racist because of how black neighborhoods are affected...lol

 

[InsCommentary]

There is cause for concern that data analytics and predictive modeling based on "big data" could, even if unintentionally, result in underwriting and rating that is discriminatory. A similar debate exists under the non-risk-based concept of price optimization. I wrote an article recently about an insurer that allegedly charged more because an applicant's name was not "English sounding."

 

[shonceman]

There is cause for concern that data analytics and predictive modeling based on "big data" could, even if unintentionally, result in underwriting and rating that is discriminatory. A similar debate exists under the non-risk-based concept of price optimization. I wrote an article recently about an insurer that allegedly charged more because an applicant's name was not "English sounding."

I picked up on "allegedly". It may be true, but a lot of things are "alleged" without an ounce of foundation. How about some more details on that case? Is your article published online?