Irrationality in automobile insurance classification: Analysis of one problem in China automobile insurance market

This article focuses on the irrationality in automobile insurance classification in China insurance market. Firstly the article gives three kinds of irrationality, which lie in the classification of vehicle size, vehicle price and vehicle owner, existed in the market; secondly the lack of market research and the popularity of insurance fraud are the two reasons put forward to explain the situations; thirdly two possible consequences, including the property loss and the adverse selection, and two feasible advices with views to the insurance companies and the related government are brought forward associated with the two reasons above.