Hu Interviewed About Insurance Costs

Wenyao Hu, Ph.D., CFA, assistant professor of finance and accounting, shared insight for the WalletHub article “What Are the Top 10 Cheapest States for Car Insurance?” Hu addresses the fairness of factors that can increase premiums, including age and occupation. When asked whether it’s fair for car insurance companies to consider a driver’s occupation in setting premiums, he says, “Yes, it’s fair. If your job involves a lot of night driving or being on the road constantly, you’re at a higher risk of accidents. [Having these individuals] paying a bit more ensures the insurance pot is fairly distributed among those who need it.”