Clarke says study refutes red-lining in insurance But study says insurance companies pay more for claims against city drivers.

September 09, 1991|By Ross Hetrick | Ross Hetrick,Evening Sun Staff

A study released today says that more automobile accident claims are filed against Baltimore residents than Baltimore residents file against motorists from other jurisdictions.

"We are not the suers, we are being sued," said City Council

President Mary Pat Clarke said at a news conference today about a study on the feasibility of insurance organization to offer lower rates to city drivers.

The study, which was sponsored by the city and the City Wide Insurance Coalition and which cost $52,000, found that 35 percent of the vehicles involved in accidents in the city are registered outside Baltimore. "There is no fact behind the fiction of red-lining the city drivers," she said.

However, the study confirms that the insurance companies do pay more for claims against city drivers than they do for drivers from other areas of the state.

The study is part of a two-year effort by the City Wide Insurance Coalition to create a non-profit organization to insure drivers at lower rates.

The biggest obstacle to that operation is the estimated $9.5 million necessary to set it up and provide the necessary capital. Despite the city's weak financial condition, CWIC President A. Robert Kaufman said the money might be raised by borrowing against city property in surrounding counties and by appealing to Baltimore's companies and labor organizations.

Kaufman said a bill to develop a plan to create such an operation will be presented when the City Council reconvenes Sept. 23.

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