Why don't they just go ahead and include race. I mean I don't agree with it but isn't there a form of descrimination to price someone according to their age. Yes I understand there are statistics that prove younger person have higher accidents. But they already price according to gender. I'm sure there are statistics that show Blacks or Whites have more accidents then the other vise versa....
2006-09-20 09:47:03 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
No, that's not really part of rating risk. I don't even think there's any data to back up whether one race is a higher risk than another. The age thing is defintely something that can be backed up. What a controversial position to take.
2006-09-20 10:17:10 · answer #1 · answered by Chris 5 · 1⤊ 1⤋
Absolutely! I agree with you 100%!
I was an underwriter for over 12 years, and I have underwritten commercial auto insurance for businesses.
Aut Insurers will probably create more and more variables to consider and evaluate as time passes, in order to reach higher levels of profitability.
The question of discrimination will be determined by the specific states that oversee the auto insurer providing coverage, as well as the federal government.
A form of discrimination in the past, called "Redlining" was deemed illegal.
Redlining is the practice of denying or increasing the cost of services, such as banking or insurance, to residents of certain areas. In the United States, the practice is illegal when the criteria are based on race, religion, gender, familial status (if there are children in a family), disability, or ethnic origin. The US Government has imposed regulations that require all banks to provide a map to anyone who asks showing the locations of home loans they have made so that individuals can ensure that redlining is not taking place. The term "redlining" comes from the practice of marking red lines on a map, which banks would do in order to delineate areas they did not want to lend to.
Redlining was a way of discriminating based on location (but many people live in areas with the same race of people so essentially this was race discrimnation).
I am certain data is available for auto accidents by race. On that I agree with you, as well.
I believe the auto insurers would discriminate by race if it was legal to do so, but I believe at this time it is not.
I hope that answers your question. Take care.
2006-09-21 05:13:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Insurance compaies are NOT public service departments. They are private enterprises and can rate anyone anyway they damn well please that can be backed up by real logistics. Why is it descrimination to say that statistically, young drivers have twice the number of accidents that 50 year olds do? Don't you believe that?
2006-09-20 13:48:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
they do use a lot a variables. Those above and your zip code. Some I agree with and some I don't. Unfortunately, many companies rate this way. Some new trend will come along and they will all go to that.
2006-09-20 09:56:31 · answer #4 · answered by mei-lin 5 · 0⤊ 0⤋
I know. The Insurance companies should just go ahead and quote us by race. Maybe we would get better quotes.
2006-09-20 09:50:00 · answer #5 · answered by buzy_bug_452000 2 · 0⤊ 0⤋