Big Rate Hike for Assigned-Risk Car Insurance

Has an accurate analysis really been made to justify the recent massive increase in assigned-risk auto insurance rates? As a down-in-the-trenches insurance agent, I can’t believe that the losses under this program are as huge as the insurance companies claim.

With 55% of the assigned risks having perfect driving records, with policy limits of $30,000 maximum for liability claims, with no physical damage coverage, how can the losses be so great? Even bad drivers do not go around having accidents daily. My assigned-risks have no more accidents than my regular clients.

The insurance companies must have greater losses with their own programs and are trying to recoup by overcharging on assigned-risks.

T.M. LUBISICH

Malibu