GM Declares Bankruptcy

[KrazyHorse]

But they each have the same effect on you, so it should even out.

Errr. No.

Please see post above this one.

[rah]

Yeah, I don't have to put up with that "reasonable one" crap.

I did work for an AMERICAN insurance company for over 13 years, and actually passed a slew of insurance exams including a few actuarial exams. But I will admit I am ignorant of Canadian laws concerning insurance. So if it's different in Canada, I guess I shouldn't make fun of BK, even thouigh he's still an idiot and it's fun.

[KrazyHorse]

Maybe I'm not understanding what you're saying, but I think I do. The additional accidents that you cause based on your presence is picked up by somebody else's insurance carrier. This assumes that people carry all types of coverage, which admittedly, some don't. Also, this assumes that people are covered unlimited, which admittedly, is rare.

The additional accidents which are "caused" (not in a liability sense, merely in a counterfactual sense) by me break up into two categories:

1) Those for which I am legally liable
2) Those for which somebody else is legally liable

I pay for category (1)
I do not pay for category (2)

[KrazyHorse]

Car insurance is traditionally higher in higher population density areas. It is cheaper in less congested areas. (on average)

As well it should be. The point is that the cost of car insurance does not capture the full marginal cost of my choosing to drive in either case. The part that's "missing" will again obviously be higher for urban drivers than for rural drivers. This is why the paper I linked to found almost no externalities associated with driving in places like North Dakota.

[Ben Kenobi]

Am I far off rah, as to the effect that population density has on accident ratios?

[Ben Kenobi]

KH:

The rates are market based in the US. By definition they cover the costs, if they didn't the price charged would be higher. If people could get a better deal, then they would also shop around, so the price is also likely efficient.

[BlackCat]

Yeah, I don't have to put up with that "reasonable one" crap.

I did work for an AMERICAN insurance company for over 13 years, and actually passed a slew of insurance exams including a few actuarial exams. But I will admit I am ignorant of Canadian laws concerning insurance. So if it's different in Canada, I guess I shouldn't make fun of BK, even thouigh he's still an idiot and it's fun.

Reminds me of the poor guy questioning KH's knowledge on physics. Though, he did have the decency to admit his error.

[Jon Miller]

So how about my idea? Put a government tax or something on insurance which forces them to charge more for where your location is and how much you drive in a year to account for this?

JM

[KrazyHorse]

It's not a terrible idea.

[KrazyHorse]

Although self-reporting of milages (as done with insurers) is somewhat problematic. Many states already have yearly/bi-yearly emissions or safety inspections. I'd suggest an odometer reading.

[KrazyHorse]

Actually, I just came up with a clever way to do pigovian taxation properly in this case, which leverages insurance companies' knowledge. Mother****er, I am a genius...

[Lorizael]

Stop smiling; it's creepy.

[KrazyHorse]

****, except I just realized that it would just lead to accident underreporting. Mother****er.

[KrazyHorse]

God ****ing damnit. So close.

[rah]

Taxing for miles driven is best done with a gas tax.

The side benefit of motivating more efficient vehicles is a big plus.

Self reporting milage doesn't work. My insurance agent always joked, that I should lie about it because the worst they would do if I got caught by an odometer check after a reported accident was to raise my rates. They wouldn't charge me retroactively. Of course it was the same agent that told me to not report my daughter of driving age since she would still be covered if she had an accident driving my car and my rates wouldn't go up until that happened. Unfortunately we had to get her a car so I couldn't do that. Fortunately my daughter just turned 21 accident free and her rates went done a lot.

While odometer readings would be better, it still requires somebody to do it routinely.
Chips that track it are an invasion of privacy. I'm not thrilled with my I-pass for that reason but the alternative is long lines at toll booths.

A Surcharge tax on your insurance based on where you live would work for the other component.