Re: Auto liability ratemaking
( WEHRLIC@COMMERCEINSURANCE.COM )
Thu, 27 May 1999 11:04:14 -0500
One of the public policy considerations should be that larger
vehicles are generally more expensive and purchased by higher income
individuals.We often hear about affordability issues and I would
think that urban or low- income people(or anyone) who purchase smaller vehicles
would benefit by having a lower rate(assuming the lower liability
cost would more than offset the higher PIP cost for smaller
vehicles).
This would seem to me to be a significant benefit, in addition to
having the rates be more cost-based , of having liability rates vary by
model.
Warren Ehrlich
Commerce Insurance Company
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