Insurance Law

From: thelede.blogs.nytimes.com.

Barbara Wellensiek knew her son?s insurance bill would be steep because of his driving record, but when the renewal notice arrived she was shocked to see the annual premium was $104,566.63.

?I thought it was a typo,? Wellensiek said today. ?I didn?t panic - I thought it was a mistake.?

It wasn?t. With 10 speeding tickets, 2 license suspensions and 3 accidents by the tender age of 19, the young man had found a way to get the provincial government?s rate calculator to spit out its ?maximum allowable charge,? although a slightly lower one was quoted.

While the poor mother was able to get a 50 percent price reduction, it is not something that a typical person could afford.  I can easily imagine a US state saying that this rate was unconscionable and that in order to allow people to drive, the rest of society should pay a surcharge for these poor, misunderstood  kids.

HT Ted.