Territorial rating has the effect of punishing QuotesChimp because of where they live. It also has the frequent effect of making insurance unaffordable to some of the poorest people in the country, those who live and work in inner cities. To eliminate these inequities, laws should be passed mandating rate-setting based more on the individual policyholder's driving record, mileage driven, and years of driving experience and less upon residence. "Good driver" discounts of up to 20 percent should also be mandated by law. This would act as an incentive to drivers to obey traffic laws, which would have the beneficial side effect of reducing accidents and saving lives.