Car Insurers Discriminate Against Brooklyn, With Backing of State Officials

This has to be one of my favorite storefront windows.

It sits there boldly on Court Street just south of Schermerhorn in Downtown, brazenly advertising the way insurance companies discriminate against car owners in Brooklyn.

[Click image to enlarge it, by the way.]

New York City already has the highest insurance rates in the country, and Brooklyn is treated worst of all.

Look closely at the window.

The rates advertised here are quite good (otherwise, of course, they would not be posted in the window), but they show that the prices for a person with a Brooklyn address are substantially higher than for someone in Manhattan, Queens or the Bronx.

Consumer advocates say insurers of auto and homes are getting away like bandits, and state insurance officials are allowing them to do it.

See the advocates' report from last year titled, "NEW YORK INSURERS OVERPRICE POLICIES AND  
UNDERPAY CLAIMS, LEADING TO RECORD PROFITS."

“Insurance companies charge more and pay out less, which is bad news for homeowners and
drivers,” Russ Haven, legislative counsel for NYPIRG (New York Public Interest Research Group) said as that report was issued.

“New York needs to level the playing field by creating an independent consumer advocate office to represent average insurance customers and to pass legislation cracking down on the unfair claims settlement practices insurers use to deny claims outright and settle other claims on the cheap.”

One thing consumers could do, of course, is petition their state senators (no longer spelled with capital letters) asking for help.

But lotsa luck with that!

Comments

[Automobile Insurance]

I believe that if there is enough public outcry smaller firms in the industry will take advantage of this and provide the lower prices for the citizens of Brooklyn.

[AI Car Insurance]

Looks like you have similar problems as we do in South Africa

[Chesca]

If cars are generally not safe in Brooklyn, there should be better insurance options for them, not less.

[Ron]

That's what they always say, that there are more thefts and fraud, etc., in Brooklyn. But where do you draw the line? Doesn't it seem more fair to go after those who actually commit fraud instead of neighbors? And the state seems to be more concerned about the insurance companies losing money from fraud than about people being bilked by the companies. Some reports say they, consumers, are being bilked.

[Ajlouny]

Is there a larger liability in Brooklyn than in any other area in New York? It just seem so extreme in comparison.

[BLACK COTTON]

Did you notice that the rates are for Liability only and not full coverage. There has been different rates based on Geographic Locations and Neighborhood Locations for a long time.