04 Sep 2005
Car Insurance Rates Shift

I'd love to see the actuaries explain the connection between a credit rating and driving. Methinks they've slipped into the "correlation = causation" trap.

Drivers are being pigeonholed into more categories of risk as dozens of rating variables are expanded into hundreds, with insurers arriving at a premium by commingling such factors as age, traffic violations, past accidents, miles driven, residence, and even credit ratings.

(link) [U.S. News & World Report]

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