DOES HIGH CAR INSURANCE FOR YOUNG PEOPLE COUNT AS DISCRIMINATION?

I’m an older driver now but remember what a nightmare it was to get insurance. Extremely over priced compared to a new driver of an older age. I know its about statistics but how can you judge what a drivers like before they have even started driving on their own.
I wrote this which goes into more details to highlight the issue.

http://www.quazen.com/Kids-and-Teens/Teen-Life/Young-Drivers-Insurance-Nightmares.555071

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Comments (7)

#1 written by Vipassana
about 2 years ago

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Absolutely.

Unfortunately, it’s 100% correct discrimination.

Young drivers = new drivers.

New drivers = limited experience drivers.

Limited experience = more accidents.

It’s not a matter of judging the kids themselves. It’s about judging the likelihood of them getting into an accident. Which is substantially high.

Not saying it’s going to be their fault, but it’s just bound to happen.
#2 written by Alex M
about 2 years ago

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The biggest problem to me is that males are charged higher than females. Grouping by age is a little more acceptable, but not gender. I read that females account for 70% of shoplifters, so why doesn’t Wal-mart charge women a higher price on items? What if blacks or Asians caused more accidents? Simply saying that young males cause more accidents is bogus. They charge it because people don’t care as long as it only affects white males. As a teen, my twin sister had two tickets and still paid slightly less than me for the same car. Now, I think she pays more with a ticket, but still.
#3 written by Dan W
about 2 years ago

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It’s an average weighted in the insurers favor.
#4 written by MSAD
about 2 years ago

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No.

It is not discrimination.

There are laws that say you can’t base price on race or sexual orientation. There are NO laws that say prices can’t be based on age. As such, it is not discrimination.

Insurance pricing is based on risk.

The higher the risk….the higher the premium paid.

Younger drivers are inexperienced.
Statistics show….they are more likely to be involved in an accident.
As such….the risk to insure them is higher. So they pay a higher premium.

If a young driver is responsible….does not have wrecks….does not get speeding tickets…..the rates will go down about age 25.

You judge what a driver is like….based on the actuarial experience of known behaviors of other drivers of that age. In a sense, you are judged by the company you keep.
#5 written by Scott H
about 2 years ago

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If they just charged young drivers more for insurance because they felt like it, that would be discriminatory. However, when they have compiled statistics over decades of driving and can conclude that young drivers are a higher risk, then it isn’t discriminatory. They can further determine that young males are more at risk than young females, so they pay more accordingly.

I know, I know – it may not seem fair. But lots of things in life aren’t fair and you ought to get used to it.
#6 written by Jim the technician
about 2 years ago

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No, Male individuals have proved beyond the reason of a doubt that they are more likely to be involved in a crash then women in most cases, This is why after the last twenty years male drivers are now paying 1500.00 every six months or more. Women are going to be the next on the list in the next ten years,because they are now behaving behind the wheel like male juniors.
#7 written by jackson guitars are the best
about 2 years ago

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How can you judge? I’ll tell you how: eight out of ten
accidental deaths involving 15-19 year-old men occur on the road. The Mustang kills 5 times more young men than the Iraqis.

In the UK it isn’t much better: road crashes remain the leading cause of death for people aged between 15 and 24.
Read some facts
http://www.whatcar.com/news-article.aspx?NA=224194
http://www.iam.org.uk/iamfleet/iam_fleet_news/fleet_to_help_reduce_young_driver_death_toll.htm