Friday, September 03, 2004

From Just The Facts About Obama
"Obama Introduced Legislation to Protect Consumers From Skyrocketing Insurance Premiums
SB1850 was introduced to help consumers deal with skyrocketing insurance premiums and determine whether insurance companies use discriminatory practices based on demographics and geography. The bill proposed a temporary one year interim rate freeze during which an insurer may not increase the premium charged for an insured for a policy of automobile insurance and created a bi-partisan task force to examine the existing statues and rules regulating automobile insurance and recommend whether the State should regulate premiums for automobile insurance."

--- Oh man where to start on this?

First price-controls no that's not a liberal thing to do at all. What do free markets know?

What about mutual insurance companies (like State Farm) so you then would force other mutual members in other states to pick up the slack since they couldn't raise rates on members in Illinois or if all of the people from Illinois are in a single mutual group make that group less financialy secure.

Discriminatory practices based on demographics and geography what does that even mean? Does he have a problem with risk being assesed baised off where you live, should someone in Collinsville pay as much as someone in Chicago? Is that the goal?

So basically it seems to me he is saying that free markets are bad for insurance and the way to create a market he feels is better (Cheeper insurance in Chicago more expensive elsewhere) is to increase regulation.

If you don't like how much you are paying for auto insurance get a different auto insurance company.


1 comment:

Morgan said...

Your blog is great! It's hard to find blogs with good content and people talking about auto insurance these days! I have a public auto insurance blog if you want to come leave me a comment or two! May I put a link to this blog of yours on mine?