Knobbies4Ever t1_jbgo8f3 wrote on March 8, 2023 at 10:24 PM

Reply to comment by Unspec7 in So now we're not even bothering with the fake paper plates huh? by 101ina45

Very interesting that the difference in insurance costs is $170/year between states that require a front plate, and those that don't. OK, "only" 8%, but $170 is a decent chunk of change.

What's really weird is that many of the "no front plate" states are low cost-of-living states. Seems like that would help push insurance rates down, right?

Team Front Plate has NJ, NY, CA, MA - all of New England and the west coast - notoriously high COL parts of the country - lots of bureaucracy, regulations etc. Yet the average insurance premiums are $170/year less among this cohort.

Honestly I was surprised by this data. What do you think explains it?

Unspec7 t1_jbgx7uj wrote on March 8, 2023 at 11:26 PM

>Honestly I was surprised by this data. What do you think explains it?

There's a lot of factors that go into insurance premium calculation. For example, for states that don't require vehicle inspections, insurance might be higher due to a higher risk of injury due to potentially unsafe vehicles. No fault states might see higher premiums due to being unable to recover from the other side. Etc.

Knobbies4Ever t1_jbi000j wrote on March 9, 2023 at 4:22 AM

My guess was states with higher-cost insurance would have more / higher-cost claims to pay out... or a regulatory environment that allows insurance companies to gouge their customers to increase profits.

I'm not in that business, but know money talks, bullshit walks.

Glad NJ has front plates... our car insurance is expensive enough already!