Journal of Political Economy Vol. 25 No. 6 1917
Automobile Insurance Rates
Abstract
In a discussion of the methods of automobile insurance ratemaking it is essential to keep in mind that the measurement of risk in every branch of insurance has approached its present status by a series of improvements and that modern methods in personal and property insurance are a result of this progress. There is consequently no anomaly in the fact that in automobile insurance, one of the youngest branches of the business, a satisfactory system of ratemaking still awaits development. The automobile was of comparatively slight importance prior to I900; in the census of I899 its manufacture was reported only as a part of the wagon and carriage industry.' Motor-car insurance was introduced in this country in the same year. In the early years of the business, furthermore, co-operation was rendered impossible by the competitive practices of many companies. Promiscuous rate-cutting was a prominent and disturbing feature of the business, and it was not until I9IO that the predecessor of the present association for rating liability and property damage risks was formed. Associated action as regards fire and theft rates appears to have been initiated only one year earlier.2
- DOI
- 10.1086/252996
- Volume
- 25
- Issue
- 6
- Pages
- 561-579
- Language
- en
- Sources
- semanticscholar openalex crossref