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Car Corner
Insurance scam

February 1, 1998
By Scott Lewis

Check out this quote:

"When an accident occurs, the heavier vehicles are more likely to inflict damage and injuries, and these result in larger claims, so it seems appropriate to charge the driver of those vehicles higher premiums."

Jonathan Adkisson
Actuary
Farmers Insurance Group

My response to this can by summed up by the the immortal Homer Simpson... D'OH!

Can you believe that insurance companies are pulling this scam. For years they have been charging more money for smaller and/or sportier cars. Sporty cars I can understand. After all, when kids get into a sports car they tend to drive more recklessly than the rest of us. But just because a car is small, they have been charging higher rates than big cars. This was supposed to be because the big cars were safer, and took less damage than the smaller cars in an accident.

Now they are trying to get the big car owners to foot the bill. What is a car buyer supposed to do. I know that some insurance companies publish ratings for cars. These are supposed to be used by people buying cars. It helps them with there buying decision. It was always the bigger cars that got the best ratings. Duh, they took less damage in an accident, and were usually less desirable to thieves as well. So they got the good insurance rates.

Now the big cars are going to get a rate increase because they take less damage in an accident. Don't be fooled. Insurance companies make money hand over fist. This contradicts what we have been told for years, and it is just a lame excuse for insurance companies to get richer.

Like the saying goes... The rich get richer, the poor get poorer. What do you think?

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