Pennsylvania Representative Anthony DeLuca Looking At Car Insurance Rates

One of the news channels on the internet had an article on Tony DeLuca who is questioning the car insurance companies' rating system. The article informs that in Pennsylvania (check your own state for this too!) the insurers are giving better rates to those with higher educations. (Here's the article I found on the net http://kdka.com/politics/Car.Insurance.education.2.895432.html

and the home page of Anthony DeLuca if you are interested in checking back to see if there is any further news or contact his office for an update http://www.pahouse.com/deluca

By now, most everyone is aware that many industries base and change premiums or interest rates on the overall personal creditworthiness of an individual, totally regardless of whether or not that person has ever had a credit issue with the business, even during long-established relationships. Basing a car insurance rate on educational level -- well, that certainly seems like it has gone way too far and that other, more important criteria should certainly be given greater weight -- maybe things like accident history and claims for starters.

It is undeniable that those who are not creditworthy should not be applying for mortgages, loans or credit they really cannot repay, but I do find it outrageous for every creditor or insurer who possibly can, to jump on the rate hike bandwagon where there has been no problem with an established relationship. The overall effect of rate hikes "just because" is to further the downward spiral of those struggling, and this causes MORE financial failures where it otherwise would NOT have happened. It is just another way to extract more money from the poor.

In turn, the poor look to the government for housing, goods and services, and everyone still left standing with some assets and a job will help pay for it -- and in this economy, it could be for generations to come.

Our entire nation's economy is teetering on the brink of a tremendous disaster, and one of the ways to help prevent or lessen the impact, is NOT to raise prices on goods and services. The outcry in this nation would be great if a grocery store charged different prices for food to cash paying customers according to their credit history or education.

Anyone else feel there are moral problems with the way business is conducted?