Why Can Auto Insurance Companies Discriminate On The Basis Of Age And Sex, But Not Ethnicity Or Race?
If you’re a teenage male, you’re doomed if you want to get auto insurance. You will pay exorbitantly more because the statistics say that you are more of a hazard. So you are not judged as an individual, but as a group of people.
I’m sure statistics can also show that certain nationalities and races are worse drivers — case in point: Asians. And I’m part Asian, so I can make fun of my own people. =)
If insurance companies are always willing to discriminate on the basis of age and sex, why not race or ethnicity?
October 14th, 2009 at 5:37 pm
Insurance companies are regulated by federal and state government. It is these public agencies (federal and state Insurance Commissioner) that makes the rules about what insurance companies can and cannot do.
In my state they are now using one’s credit report to help determine your rates. Apparently having a low credit score is also a “verifiable” risk factor.
October 14th, 2009 at 5:37 pm
Because as soon as they even dare mentioning race or ethnicity they’ll get accused of racism, possibly get sued over it by someone and possibly made to pay $2 mil by some great judge.
This, they do not want. I know it is not fair but our society isn’t exactly fair.
Anyway, most teenagers won’t be seen dead in an “uncool car”. But if you get an “uncool car” you can pay cash for it, get liability only on it and your premiums will BEAT your 57 year old dad’s (if he’s financing a $40.000 SUV)
So not all is lost for the clever teenager.
Try this site, if you want to find your best or cheapest auto insurance just in few minutes,
http://best-auto-insurance-usa.info/
Hope this help,
October 14th, 2009 at 5:37 pm
Teen age males are a higher risk. More than likely a large amount claims are filed because of the actions of a teen age male than any other age group or gender.
To say members of a particular race are bad drivers is simply racist. Since you’re part Asian, does that make you a bad driver a part of the time? It’s ridiculous.
Insurance companies also make smokers pay more or don’t cover them at all. There’s nothing wrong with that either.
October 14th, 2009 at 5:37 pm
I think it’s bull, and degrading to those groups who are discriminated against. People should be judged as individuals. True, those involved in accidents would sometimes see higher rate increases than they do now, but if we are to create a society free from bigotry and discrimination, this is a necessary step.
October 14th, 2009 at 5:37 pm
they do according to WHERE YOU LIVE…
if there are a lot of accidents in an area/ or if a lot of car thefts
there would probably be a consentration of a certain race in spacific neighborhoods.
I just wish they would insure the DRIVER …NOT THE CAR .. then i would only have to have one policy!
October 14th, 2009 at 5:37 pm
Probably because the law will let them do it with age and sex but not with race and ethnicity. I’m sure insurance companies would be perfectly happy to charge various groups more if they could get away with it.
October 14th, 2009 at 5:37 pm
They are not discriminating. They are pricing based on verifiable risk factors. As a matter of fact, there probably are NOT statistics to support your claim about Asians.