Is the insurance industry's blatant redlining finally being reigned in?

[Hermod]

Just for fun, while sitting here typing this I quoted a hypothetical 2012 Ford Fusion in the 48227 zip code on Progressive.com. Progressive quoted me a 6-month policy for $3,047.50. Over the course of a 5 year auto loan I would pay $30,000 for insurance and roughly $21,000 to buy the car with a loan rate of 4%. Pause. Just in case we aren't on the same page yet let me translate... The car insurance costs more than the car. In that light, I think Detroiters who choose not to buy insurance are making rational decisions about irrational insurance rates.

If you lived in my zip code [[33064) or several zip codes around here, Progressive would not even insure you. They just non-renewed my niece who lives with me. They dropped her agent too [[the agent hooked her up with another insurance company). Progressive just will not not sell auto insurance in this zip code [[and surrounding ones) because of the very high rate of auto insurance fraud in personal injury protection [[PIP). There are too many crooked chiropractors with arrangements with ambulance chasers in the area. Florida insurance laws apparently allow companies to boycott zip codes.

[iheartthed]

If you lived in my zip code [[33064) or several zip codes around here, Progressive would not even insure you. They just non-renewed my niece who lives with me. They dropped her agent too [[the agent hooked her up with another insurance company). Progressive just will not not sell auto insurance in this zip code [[and surrounding ones) because of the very high rate of auto insurance fraud in personal injury protection [[PIP). There are too many crooked chiropractors with arrangements with ambulance chasers in the area. Florida insurance laws apparently allow companies to boycott zip codes.

Well, I doubt there that are many chiropractors in 48227 defrauding Progressive. Maybe the people in 48227 who choose to buy insurance are subsidizing the fraudulent chiropractors in some other zip code since Progressive is forced to offer the chiropractors insurance too. Who knows? It's really here nor there. All I'm saying is that if I were buying a car and I lived in 48227 then it doesn't make much practical sense for me to hold a car insurance policy past a few months of owning the car [[except for legal reasons). I'd probably be better off dumping what I would pay for insurance into a savings account, and when/if something happened just pay for the repair/replacement myself.

[1KielsonDrive]

If you lived in my zip code [[33064) or several zip codes around here, Progressive would not even insure you. They just non-renewed my niece who lives with me. They dropped her agent too [[the agent hooked her up with another insurance company). Progressive just will not not sell auto insurance in this zip code [[and surrounding ones) because of the very high rate of auto insurance fraud in personal injury protection [[PIP). There are too many crooked chiropractors with arrangements with ambulance chasers in the area. Florida insurance laws apparently allow companies to boycott zip codes.

Blame it on chiropractors and lawyers. I'd rather blame it insurance companies.