Car insurance problems and perspectives
Common Criticisms of Today's Car Insurance Industry
“Determining Premiums Using Gender is Sexist”
Despite stereotypes, car insurance providers actually find that women are statistically safer drivers. As a result, they pay less for coverage. Some say that this is sexist, however, and want rates to be the same.
Many states are passing laws against “gender rating”, as the practice is known, with the main thrust being extremely high costs to health insurance in women.
The car insurance industry, however, claims that it isn't sexism—it's science. “Women deserve to pay less for filing fewer claims.”
“Basing Premiums on Estimated Mileage is Stupid. Who Knows How Much I'll Drive?”
If you are concerned about paying too much for car insurance, since you might not drive much, consider an alternative type of car insurance: pay-as-you-drive insurance.
This is a usage-based system meant to charge people for only the miles they use. This also makes use of modern technology and rewards good driving habits with lower rates.
Ask insurance providers for per-mile car insurance quotes.
“Tort Systems Are Wasteful and Often Punish All Parties, Even Responsible Drivers”
It is true that the grey areas in tort systems tend to lead to lengthy and expensive court costs for everything. However, Liability and other coverages can provide for you legal defense. This is the response from insurers.
States have also tried to respond by either doing away with fault and instituting a no-fault system, or giving drivers the option of fault or no-fault insurance.
“Car Insurance Quotes All Come Out the Same. What's the Point?”
If you are getting rates that are too similar, don't fret. Double-check that the information you put in is complete and accurate and push on, getting more car insurance quotes. Then, call the potential providers and ask about their discounts, factoring those into the rates. Then compare.
“People Go Across State Borders All the Time. The States Don't Regulate Things Well.”
Many people today point out that interstate commerce is big, so why are individual states still regulating car insurance? There is a lot of grey area when a car from Michigan hits a car from Ohio. Federal regulation is on the table, though rates could increase.