State Rep. John Hennessy, D-Bridgeport, has submitted legislation aimed at equalizing the wide range local auto (photo by Getty Images) insurance. “Urban motorists, more likely than not, pay exorbitant differences when it comes to auto insurance,” said Hennessy, who serves on the Environment and Finance Committees are is co-chairman of the Veterans Affairs Committee, said. “It’s time we look at and re-address territorial rating with the goal of a more equitable distribution of insurance rates.”
Here is the rest of Hennessy’s news release:
“All states allow insurers to use territorial rating. Territorial rating refers to an insurer’s practice of factoring in, when setting auto insurance rates, the principal place where a driver garages his or her vehicle. In Connecticut, insurers that use territorial classifications must assign a weight of 75% to the individual territory loss costs and 25% to the statewide average loss costs. Studies have shown that where a person garages his or her vehicle is a major predictor of loss. Auto insurance rates tend to be higher in urban areas due to greater traffic density, road configurations, crime rates, and accident rates. Because losses tend to be higher in urban areas, auto insurance rates are often higher in those areas. When accidents occur, the insurer counts the resulting loss against the territory of the “at fault” driver’s garage location. For example, if a person who lives in Mansfield was at fault for an accident that happened in Hartford, the loss experience is attributable to the Mansfield territory. A weight of 50% to the individual territory loss costs and 50% to the statewide average loss costs would help to distribute rates more evenly across the state.”