Insurers and the numbers

http://finance.yahoo.com/insurance/ar ... ou?mod=series-m-article-c

On the bright side, the new insurance model means cheaper rates for people who don't have phones or hands, as they are less likely to file a claim.

Would be great questions for the insurance companies to ask.

Do you own a mobile phone?

Do you drink alcohol?

Can you read?

Do you drive when you drive or multitask? (eat, put on make-up, read, etc.)

but then the actuaries would go nuts...

Several years ago, I tried to get a basic liability insurance policy for an RC Car track. They wanted $5k a year. Why? all they heard was "track." They stopped there.

Some analyst heard of someone being injured at an RC track and that was that.

Those morons will raise a rate based upon the strangest of things. Personally, past performance is the best indicator for future risk.

Do I own a mobile? Yes, but I don't drive without an ear bud

Do I drink alcohol? Yes, but not to excess, and I don't drive afterwords.

Can I read? I will let you be the judge of that.

Do I multitask when driving? No, unless you count the occasional soft drink. I don't eat nor do I conduct business when driving.

And my record shows that to be true - no accidents... no DUI's... no cell phone violations... see? easy.

As far as credit scores, some states, including CA, have been trying to change that. DE allows the use of credit scores. I am not a fan of that, because in this economy, a good driver, with a good history, could go broke overnight... and that should not effect his insurance rates. How can he be dinged when his company he has worked for for 20 years folds? Or his wife has gotten sick and needs addition care?

If someone has a history of running up cards, sure, but that's a different trend, and it shows irresponsibility.

I am afraid the insurance companies would be just to quick and arbitrary.

My only tickets are manly stuff like speeding, and exhibition of speed. My insurance doesn't charge much but they're still making bank on me.

I don't know how the credit scores are factored in. I agree that it doesn't make sense that someone with a good driving record on hard times is higher risk. I don't have a problem with them having the info available to them. It's in their best interests protect themselves where they see fit. But price gouging is counterproductive in an open market.