Should level of education or occupation be factors in car insurance rates?

Read: Mauriello, Tracie, Bill would eliminate education as factor in insurance rates, Post-Gazette. Dec. 26, 2008.

Poll your class:

Did you know that your level of education and occupation impact your car insurance rate?

Do you believe it should?

Calculate the long term costs.

According to the report, "Under one carrier's rates, a 37-year-old Pennsylvanian with a clean driving record and a Ph.D. would pay $546 a year to insure a 10-year-old sedan. If he were a high-school dropout instead of a doctor of philosophy, the rate would be $870."

If their insurance costs never changed, what is the difference the two individuals will pay for their car insurance over 20 years?

 

What factors should be used?

Identify factors that you believe should be used by insurance companies to set their car insurance rates.

What choices can consumers make to lower their car insurance rates?

Take Action:

Write a Letter to the Editor of your local newspaper regarding this issue.
Give a specific action you are taking to improve your costs for car insurance.

OR

Write a letter to your local state representative regarding this issue.
In your letter, give a specific action (beyond voting for or against it) that you are asking for your legislator to take.

Your challenges include: finding their office address, using the correct salutation including title, as well as, following appropriate business letter writing format.

Many elected officials have an email form/link in their web site. It is reasonable to use this, in lieu of paper and postage, but format and style expectations remain the same. Write the letter in word processing. Edit it as needed. Then copy .. paste it into the email form. Some have a maximum character limit to emails. If that is the case, write the formal letter. Then drop the address heading and date from the email.

BTW - Writing and saving your letter in word processing is a great way to save a copy of your letter. You should always save a copy of correspondence you send to elected officials.

Extend your knowledge -

What is the process - from proposal to enacting - for this change to become law?

"Nearly 4,500 bills were introduced during the two-year legislative session that ended last month, but only 292 laws were signed - and about a quarter of those were routine appropriations bills.

Those are long odds for lawmakers hoping to get a favorite bill passed, particularly given that the General Assembly's agenda is largely driven by the majority leaders and governor." Pa. Legislature's Chairmen Prepare For New Session, Mark Scolforo, Fulton County News. 12/25/08

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