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Resource ID: #20501
This story deals with the unfairness of the factors determining auto insurance rates. Specifically, New Jersey drivers "pay more on average for auto insurance than in any other state." In general, drivers from urban areas pay more than those from rural areas and, although there is a logic to it, "consumer advocates in several states argue that the higher number of losses in urban areas cannot possibly account for the huge difference in rates." Besides, some insurance companies avoid getting inner-city clients by not having offices in such areas. Legislation passed in New Jersey in 1997 partially fixed the problem and the number of insured cars went up 12 percent in two years. The story also refers to a program the state of California designed to counteract the unfairness.
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