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Car Insurers Eye Driving Skills To Set Prices

NPR -- To the average consumer, car insurance can seem pretty arbitrary. What you get charged often depends more on where you drive than how you drive.

John Egan of InsuranceQuotes.com says it's very often about location, location, location. Two people, he says, can live in two different zip codes in the same city "and pay a substantially different amount of money, depending on exactly where [they] live in your community."

How much a driver pays also varies widely from state to state. State laws about personal injury and liability go into the mix, along with a whole host of other factors.

Massachusetts drivers pay the lowest premiums, Egan says, while Michigan drivers pay the most.

"In the Detroit area in particular, there are a lot of uninsured drivers," Egan says. "And when you've got more

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Submitted Aug 07, 2012 By: skb69sa

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honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Aug 10, 2012 6:37:03 AM Ignore honda0105 Report Abuse that's why lots of car insurance providers give either discount or forgiveness for accident free driving over many years. What I don't think is a good idea is Progressive's new surveillance of a driver (though right now voluntary I understand) to get a lower rate. It's a gimmick to get more people to switch to them and pays off for them b/c they can collect lots of data on the driver and then refuse a claim in case of accident.
LetemEatCake Champion Author Oklahoma City Posts:5,667 Points:1,229,075 Joined:Mar 2008	Message Posted: Aug 9, 2012 12:21:31 AM Ignore LetemEatCake Report Abuse A great deal of your premium depends on 2 things. Wher3 you live and your age. After 20 years of no tickets, no accidents....the moment iTURNED 65
leeac Champion Author Ohio Posts:1,731 Points:460,630 Joined:Jan 2012	Message Posted: Aug 7, 2012 10:24:39 PM Ignore leeac Report Abuse Skilled drivers have fewer accidents.
PCWHIZ All-Star Author Denver Posts:585 Points:448,965 Joined:May 2004	Message Posted: Aug 7, 2012 3:13:39 PM Ignore PCWHIZ Report Abuse Sounds like big brother run amuck.
hok Champion Author Los Angeles Posts:1,370 Points:1,027,470 Joined:May 2008	Message Posted: Aug 7, 2012 1:21:17 PM Ignore hok Report Abuse √ How to determine driving skill?
schatzila Champion Author Los Angeles Posts:5,084 Points:1,043,345 Joined:Jun 2010	Message Posted: Aug 7, 2012 12:03:16 PM Ignore schatzila Report Abuse I love this!
blupupher Champion Author Houston Posts:3,690 Points:774,770 Joined:Feb 2011	Message Posted: Aug 7, 2012 11:35:55 AM Ignore blupupher Report Abuse no thank you, I don't want or need a nanny device on my vehicle.
crep1291 Champion Author Ottawa Posts:2,637 Points:486,190 Joined:Dec 2010	Message Posted: Aug 7, 2012 10:56:40 AM Ignore crep1291 Report Abuse Excellent. I'm waiting impatiently for this to become mandatory.
jl1rp Champion Author New Hampshire Posts:1,975 Points:385,130 Joined:May 2012	Message Posted: Aug 7, 2012 10:25:18 AM Ignore jl1rp Report Abuse ok
boldrph Champion Author Topeka Posts:18,528 Points:3,478,365 Joined:Oct 2002	Message Posted: Aug 7, 2012 10:04:59 AM Ignore boldrph Report Abuse confiscate the car of the uninsured driver
AlienBug All-Star Author Connecticut Posts:732 Points:218,035 Joined:Jul 2011	Message Posted: Aug 7, 2012 9:57:41 AM Ignore AlienBug Report Abuse Weird math fact: 95% of Americans consider themselves to be above average drivers.
unipanini All-Star Author New York Posts:903 Points:264,575 Joined:Mar 2012	Message Posted: Aug 7, 2012 9:54:48 AM Ignore unipanini Report Abuse Is there an actuary in here?
gravityhurts Champion Author North Carolina Posts:4,229 Points:964,230 Joined:Sep 2008	Message Posted: Aug 7, 2012 9:48:02 AM Ignore gravityhurts Report Abuse it's all about statistics that will make insurance companies more profits, how about we work to get the UNinsured off the roads so we don't get charged for them
mabrams184 Champion Author Lexington Posts:2,176 Points:557,205 Joined:Aug 2011	Message Posted: Aug 7, 2012 9:22:35 AM Ignore mabrams184 Report Abuse People driving without insurance cause all of us to pay more, but insurance companies are going to do whatever is going to make more profit for them.
EVBuddy Champion Author Nevada Posts:16,830 Points:3,058,320 Joined:Sep 2004	Message Posted: Aug 7, 2012 9:22:18 AM Ignore EVBuddy Report Abuse ok
fuel2use Champion Author Seattle Posts:3,609 Points:757,945 Joined:Dec 2010	Message Posted: Aug 7, 2012 9:17:28 AM Ignore fuel2use Report Abuse They look at many different ways.
wamster Champion Author Houston Posts:4,417 Points:719,565 Joined:May 2007	Message Posted: Aug 7, 2012 8:58:52 AM Ignore wamster Report Abuse You shouldn't be able to register your vehicle and have it inspected without proof of insurance. When getting a drivers license; a check should be conducted if you own a vehicle. If the tags aren't current; they shouldn't renew your drivers license.
muquee Champion Author Harrisburg Posts:2,535 Points:547,825 Joined:Nov 2011	Message Posted: Aug 7, 2012 8:57:21 AM Ignore muquee Report Abuse Good track record means squat.
cricket48750 All-Star Author Michigan Posts:815 Points:423,740 Joined:May 2011	Message Posted: Aug 7, 2012 8:55:41 AM Ignore cricket48750 Report Abuse Insurance is terrible
bicycle1966 All-Star Author Akron Posts:606 Points:414,360 Joined:Jul 2011	Message Posted: Aug 7, 2012 8:36:59 AM Ignore bicycle1966 Report Abuse while wierbe states that you only need to "state you have insurance" in Ohio to get a veh. license -- that's not quite the whole story. If your car has a lienholder (typically the bank you get your loan from) then they will actually require proof. If you ever get pulled over in Ohio, the police routinely ask for 3 things -- license, registration, and proof of insurance.
treehood Champion Author San Diego Posts:2,179 Points:423,485 Joined:May 2011	Message Posted: Aug 7, 2012 8:23:08 AM Ignore treehood Report Abuse Just as I thought, according to insure.com : Below are the U.S. states and the District of Columbia as ranked by the average annual premium that a representative driver would pay based on rates for 40-year-old single male driver who commutes 12 miles to work 1. Michigan, $2,541 2. Louisiana, $2,453 3. Oklahoma, $2,197 4. Montana, $2,190 5. Washington, D.C., $2,146 6. California, $1,991 7. Mississippi, $1,896 8. New Mexico, $1,896 9. Arkansas, $1,836 10. Maryland, $1,807 11. North Dakota, $1,794 12. Connecticut, $1,786 13. Rhode Island, $1,747 14. Wyoming, $1,714 15. Hawaii, $1,707 16. South Dakota, $1,707 17. Georgia, $1,670 18. New Jersey, $1,663 19. West Virginia, $1,633 20. Kentucky, $1,629 21. New York, $1,627 22. Minnesota, $1,614 23. Washington, $1,584 24. Missouri, $1,563 25. Indiana, $1,518 26. Colorado, $1,508 27. Texas, $1,492 28. Delaware, $1,489 29. Florida, $1,476 30. Nebraska, $1,470 31. Pennsylvania, $1,468 32. Kansas, $1,461 33. Alaska, $1,454 34. New Hampshire, $1,334 35. Massachusetts, $1,328 36. Idaho, $1,325 37. Alabama, $1,306 38. Oregon, $1,306 39. Nevada, $1,300 40. Illinois, $1,290 41. Arizona, $1,280 42. Utah, $1,272 43. Virginia, $1,237 44. Iowa, $1,179 45. North Carolina, $1,154 46. Ohio, $1,152 47. Tennessee, $1,146 48. Wisconsin, $1,128 49. Maine, $1,126 50. South Carolina, $1,095 51. Vermont, $995
treehood Champion Author San Diego Posts:2,179 Points:423,485 Joined:May 2011	Message Posted: Aug 7, 2012 8:14:35 AM Ignore treehood Report Abuse Where do they come up with Ma. drivers pay the lowest premiums? That cannot be true.
tomok Champion Author Portland Posts:33,579 Points:2,372,235 Joined:Aug 2006	Message Posted: Aug 7, 2012 8:12:21 AM Ignore tomok Report Abuse Car insurance should be based on the persons driving ability and skills and No accidents. Having a black box and gps device installed to monitor your driving and save you money is up to you. Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost. The price of fuel at the pump is too high! 12/22/2012
plbell627 Champion Author Dayton Posts:5,263 Points:1,227,730 Joined:Mar 2007	Message Posted: Aug 7, 2012 8:03:31 AM Ignore plbell627 Report Abuse I agree with bot mnbeancounter & wierbe
Wierbe Champion Author Cincinnati Posts:3,887 Points:1,145,840 Joined:Apr 2006	Message Posted: Aug 7, 2012 8:01:17 AM Ignore Wierbe Report Abuse If we can force health care insurance on everyone, why not auto insurance? In Ohio you only have to state that you have insurance in order to get a vehicle license - no proof or verification required. I wonder if folks sometimes skip the truth on this one? Personally, I would be happy to show my insurance card.
mnbeancounter Champion Author Minnesota Posts:4,966 Points:1,089,620 Joined:Oct 2009	Message Posted: Aug 7, 2012 7:58:05 AM Ignore mnbeancounter Report Abuse No insurance-no license tab renewal on the car. Then require the insurance co to notify the state if insurance is cancelled. If insurance is cancelled and no new proof of insurance have the police pull the plates
taxiken Champion Author Twin Cities Posts:6,080 Points:1,573,475 Joined:Feb 2003	Message Posted: Aug 7, 2012 7:55:45 AM Ignore taxiken Report Abuse 3,000,000 accident free doesn't count for squat.
UncaLar Champion Author Indiana Posts:1,936 Points:410,925 Joined:Apr 2005	Message Posted: Aug 7, 2012 7:53:21 AM Ignore UncaLar Report Abuse There are more consumers than business and insurance owners. Can't we work together and come up with a way to stick it to them for once?
maxcap59 Champion Author Texas Posts:2,875 Points:610,195 Joined:Apr 2011	Message Posted: Aug 7, 2012 7:52:51 AM Ignore maxcap59 Report Abuse My insurance rates dropped dramatically when I moved from MI to TX in 04. It was a well known fact in MI that people outside the Detroit area (I was in Kalamazoo) were paying higher premiums because of Detroit area drivers, insured or uninsured. There have been people in the government trying to change that since the 70's, but the insurance company lobbyists are too rich.
netman044 Champion Author Texas Posts:6,848 Points:1,306,125 Joined:Sep 2005	Message Posted: Aug 7, 2012 7:52:37 AM Ignore netman044 Report Abuse Short duration policies contribute to uninsured drivers. They buy a policy for 1-2 months, get their drivers license, inspection sticker, and registration renewed then cancel the policy. Texas regulations allow the insurance companies to charge insured motorists a fee for uninsured motorist coverage.
nwhawk Champion Author Kansas Posts:2,091 Points:597,280 Joined:Nov 2010	Message Posted: Aug 7, 2012 7:51:18 AM Ignore nwhawk Report Abuse Between jumping gas prices and high insurance premiums it is making it difficult for those on SS to drive. Seeing more golf carts in town then ever.
Topless2012 Champion Author Twin Cities Posts:2,568 Points:507,790 Joined:Jan 2012	Message Posted: Aug 7, 2012 7:49:40 AM Ignore Topless2012 Report Abuse it is called your driving record.
BartBuzz Champion Author Atlanta Posts:9,020 Points:1,802,485 Joined:Aug 2006	Message Posted: Aug 7, 2012 7:48:56 AM Ignore BartBuzz Report Abuse The auto insurers sucker you in with a lower price....and your premium goes up the very next billing period.
red5529 Champion Author Alabama Posts:4,379 Points:1,484,960 Joined:Mar 2008	Message Posted: Aug 7, 2012 7:48:49 AM Ignore red5529 Report Abuse Ok
W4YAH Champion Author Florida Posts:1,223 Points:247,845 Joined:Feb 2012	Message Posted: Aug 7, 2012 7:48:46 AM Ignore W4YAH Report Abuse Save on insurance to pay for higher gas prices...good idea!
slayur Champion Author Chicago Posts:1,534 Points:1,238,240 Joined:Sep 2005	Message Posted: Aug 7, 2012 7:48:31 AM Ignore slayur Report Abuse ok
rtw777 Champion Author Florida Posts:9,531 Points:1,868,720 Joined:Jan 2008	Message Posted: Aug 7, 2012 7:47:48 AM Ignore rtw777 Report Abuse New Jersey always had the highest car insurance cost. Too bad for MI.
mk9999 Champion Author Rochester Posts:8,050 Points:1,700,570 Joined:Aug 2008	Message Posted: Aug 7, 2012 7:47:44 AM Ignore mk9999 Report Abuse More price gouging.
Jmac2008 Champion Author Missouri Posts:2,411 Points:907,865 Joined:Dec 2008	Message Posted: Aug 7, 2012 7:47:43 AM Ignore Jmac2008 Report Abuse it make sense to set the rates on peoples driving records, not the area they live in.
lindact Champion Author New Haven Posts:8,871 Points:1,743,720 Joined:May 2008	Message Posted: Aug 7, 2012 7:46:51 AM Ignore lindact Report Abuse CT requires insurance proof to register a vehicle.
arinkrat17 Champion Author Twin Cities Posts:6,421 Points:1,358,845 Joined:Aug 2009	Message Posted: Aug 7, 2012 7:46:36 AM Ignore arinkrat17 Report Abuse ok
metrojeep Champion Author Fort Worth Posts:2,401 Points:462,510 Joined:Feb 2012	Message Posted: Aug 7, 2012 7:46:05 AM Ignore metrojeep Report Abuse Common sense
thuathienhue Champion Author Michigan Posts:3,584 Points:659,915 Joined:Jul 2011	Message Posted: Aug 7, 2012 7:44:41 AM Ignore thuathienhue Report Abuse Of course we pay more in car insurance and most everything else. Remember to vote for change and it might help. We can start today at the poles.
SnickersDog Champion Author Denver Posts:3,414 Points:706,735 Joined:Feb 2011	Message Posted: Aug 7, 2012 7:44:12 AM Ignore SnickersDog Report Abuse Duh. What you think the tattle tale devices you plug in are doing?
GatorDone Champion Author Savannah Posts:2,539 Points:2,015,530 Joined:Feb 2006	Message Posted: Aug 7, 2012 7:43:54 AM Ignore GatorDone Report Abuse k
redbeard47229 All-Star Author Indiana Posts:686 Points:44,215 Joined:Feb 2012	Message Posted: Aug 7, 2012 7:43:12 AM Ignore redbeard47229 Report Abuse Detroit: more uninsured=higher prices=more uninsured=higher prices. What a concept
Canucktree Champion Author Alberta Posts:5,023 Points:1,046,915 Joined:Dec 2008	Message Posted: Aug 7, 2012 7:43:07 AM Ignore Canucktree Report Abuse Great idea!
JCUBE Champion Author Michigan Posts:8,721 Points:1,941,945 Joined:Aug 2003	Message Posted: Aug 7, 2012 7:42:40 AM Ignore JCUBE Report Abuse not gas price related
BJ1947 Champion Author Oklahoma Posts:1,276 Points:498,330 Joined:Mar 2011	Message Posted: Aug 7, 2012 7:42:31 AM Ignore BJ1947 Report Abuse So
bozo Champion Author Boston Posts:4,690 Points:2,091,630 Joined:Feb 2003	Message Posted: Aug 7, 2012 7:42:09 AM Ignore bozo Report Abuse interesting item.