Driver Record: a Political Red Herring That Reveals the Basic Flaw in Automobile Insurance Pricing
نویسندگان
چکیده
......................................................... ..2 00 INTRODUCTION........................................................20 1 REVIEW OF 1979 INDUSTRY STUDY. ................................... ,204 Driver Record Data Calculated for Three Model Groups ..................... 205 Driver Record: Discounts/Surcharges vs. Accident Differences ............... ,208 Exposure Period Measured in Years or Miles .............................. 215 Differential Impact on Low-mileage Cars ................................. ,217 Discussion of The Industry Study. ....................................... .221 Randompricing.....................................................22 2 Measurement Unit for Driving Exposure. .............................. ,223 Driver Record Cost Differences Prove Overcharging at Class Price. ........ ,226 Differential Impact on Low-Mileage (“Low-Risk”) Drivers ............... .227 WHAT IS DRIVER RECORD PRICING FOR?. ............................. ,228 Effectiveness of Driver Record in Lowering Prices. ........................ .228 What Purpose Does Driver Record Pricing Serve For Insurers and Regulators?...........................................................23 1 Underwriting Selection. ............................................. .23 1 Blaming the Consumer for Insurance Prices ............................ .232 ‘Actuarial Justification’ Relies on Professional Dishonesty ...................... .233
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