Automotive

Allstate tried to cut off auto insurance sales to drivers in Brampton, lawsuit claims

  • Last Updated:
  • Dec 23rd, 2018 11:27 am
Deal Addict
Dec 28, 2005
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I'm curious what she thinks the just alternative is. It would seem that the expected risk of paying out a claim to a resident of Brampton has become so intolerable that the only options are: operate at a loss; substantially increase premiums; or, stop offering insurance. Option #1 is off the table. Option #3 is potentially illegal and from her point of view morally unacceptable. Is she okay with insurance premiums becoming even higher than they already are in Brampton to account for the risk (read: level of fraud and awful driving)? Oh wait, we already had Sikh politicians attacking the insurance companies for doing that. I never thought I'd side with private insurance companies, but it's a no-win situation for them. Until politicians have the will to mandate stronger policing of driving and fraud in Brampton, we are not going to see any changes in behaviour.
Last edited by unshavenyak on Dec 17th, 2018 9:22 am, edited 1 time in total.
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Redsanta wrote:
Dec 16th, 2018 2:40 pm
then they would be sued for price discrimination targeting specific groups..

You know if insurance company deemed your group as risky, they for sure hell have a lot of statistical confidence evidence. After all, thats what the actuaries do all day with their complex risk models, etc.

If she in the news is just a claim analyst then she wouldnt really understand this.
They already discriminate based on age, sex and location. How is discriminating even more on location somehow illegal?
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May 1, 2012
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engineered wrote:
Dec 16th, 2018 8:11 pm
They already discriminate based on age, sex and location. How is discriminating even more on location somehow illegal?
Don’t forget martial status, having or not having kids, and the # of garden gnomes in the yard.
Deal Addict
Sep 8, 2017
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A few people have asked why it's illegal to deny coverage to Brampton. It says in the article.
Insurance companies operating in Ontario follow what is known as "the all-comers rule." If an applicant meets a set of criteria laid out by providers and approved by FISCO, they cannot be denied insurance, regardless of where they live or their ethnic background.
So Allstate (just this branch?) are in violation of this "all-comers rule" if they were refusing to sell policies to Brampton residents, as it is alleged.
Newbie
May 30, 2017
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I'm not sure an auto insurance company can flat-out hard-decline an applicant because of where they live. There's varying rates for different places, there's "please fill out this application form and mail it back to us for further review" in hopes the delay would push someone urgently looking for insurance to go elsewhere, but I'm preeeettty sure Brampton alone is not a decline rule that FSCO would approve.

But this...

"It was clear, she alleges, that the directive targeted visible minorities."

Kind of ruins her credibility that she isn't exaggerating.
Sr. Member
Aug 13, 2006
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Ottawa
Could someone enlighten those, not familiar with the area, what visual minorities we are talking about here?
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eugene_2005 wrote:
Dec 17th, 2018 9:25 am
Could someone enlighten those, not familiar with the area, what visual minorities we are talking about here?
Ones that are used to Anarchy on their roadways.
Sr. Member
Aug 13, 2006
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DealFixation wrote:
Dec 17th, 2018 9:29 am
Ones that are used to Anarchy on their roadways.
That narrows down the list but still not quite enough.
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eugene_2005 wrote:
Dec 17th, 2018 9:35 am
That narrows down the list but still not quite enough.
Can say no more*
Last edited by DealFixation on Dec 17th, 2018 4:10 pm, edited 1 time in total.
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I heard this on the news on the radio this morning, I hope they get sued for breaking the law.
Hi
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engineered wrote:
Dec 15th, 2018 11:47 pm
So insurance companies are forced to sell their product in all markets? So much for free market.
Still, if they wanted to reduce their risk in Brampton, why wouldn't they just jack up their rates there? It'll either cover the fraud or essentially stop sales in the area because they wouldn't be competitive.
What the hell are you talking about? You dont know what free market is. Free market would be letting much cheaper Florida and chinese insurance co's comimg to Ontario to compete and lower premiums.
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MusicBox wrote:
Dec 17th, 2018 10:06 am
What the hell are you talking about? You dont know what free market is. Free market would be letting much cheaper Florida and chinese insurance co's comimg to Ontario to compete and lower premiums.
I think you don't know what free market is.
"In a free market the laws and forces of supply and demand are free from any intervention by a government" https://en.wikipedia.org/wiki/Free_market

If regulations force a company to sell a specific area, then the market is not as free as one without those regulations. Back to Econ 101 for you.
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Swerny wrote:
Dec 17th, 2018 10:14 am
it's alright, we will soon all be paying through the nose so that Brampton drivers can get cheaper rates.
https://www.cp24.com/news/private-membe ... -1.4135215
there's a thread here somewhere on that topic.
Ahhh hell no! I'm enjoying paying half what I used to pay in Toronto. Driverless cars can't come soon enough.
Though if we had more strict driver training and rates were adjusted for driver skill level I'd be very happy with that.
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engineered wrote:
Dec 17th, 2018 10:36 am
I think you don't know what free market is.
"In a free market the laws and forces of supply and demand are free from any intervention by a government" https://en.wikipedia.org/wiki/Free_market

If regulations force a company to sell a specific area, then the market is not as free as one without those regulations. Back to Econ 101 for you.
Yeah but your quote is valid only if the government doesnt forces the masses to have insurance. I tell you what, remove mandatory insurance laws and then let State Farm sell their services whevere they want, now that would be a level free market.

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