Is this age discrimination?

Question

Every body knows that young people have to pay more for insurance than anybody else. I am a 19 year old male, and my driving record is spotless.
Take this example. My father is 56, and he too has a clean driving record. Insurance for him on a 1999 mazda 626 is $114 a month. For me, its $266. Now why is that? If my driving record was bad, I would understand, but its not. My stepfather on the other hand, does not have a good driving record, he has several accidents and tickets, but the insurance on the same car for him is only $133 a month. People tell me: "Its just because your young and a guy" or they say "thats just the way it is". Now why is this just the way it is? For that matter, it could be sex discrimination as well. And just so you know, all these prices were pulled from www.progressivedirect.com. I think that we should be entitled to the same benifits as every one else. Of course, the type of coverage will affect the price, but we should have the same options.

Answer 1

It is maddening, unfair and downright discriminating, I agree. For every good driver below the cut off age group for high risk insurable group of male drivers, are 20 other bad one. The good ones are being punished monetarily for the sins of their age group.
There are changes happening though. In some countries in the world, that initial insurance rate is coming down. Everybody starts of with a clean slate, albeit slightly higher. The penalties for bad driving simply goes up with every accident and damage to the vehicle insured. Fair?

Answer 2

Insurance companies are all about risk and we all fall into one category or another. The age and sex of the driver calculates into that risk. Young males will pay extremely high rates because statistically, they are very likely to get into an accident. I'm not an actuary and I don't know what the actual statistics are but for males in this age group there is something like an 75% chance that the insurance company will pay a claim on them.

At 19, you are probably paying less than a 16 year old and you will probably see a reduction in the rates again at about 21, 25 and 30 unless you marry before that. Yes, marriage factors into the risk, as well.

There is usually a rate reduction at age 50 and the premium for a 50 year old is lower than that of a 40 year old. At 75, though, you see the rates increasing again.

Besides the vehicle, your age and your driving record, other factors that will affect your premium is your address and your credit score. It has been determined that people with poor credit or no credit are more likely to file a claim. How much that actually factors into your premium depends on the insurance company. The longer you stay with one company can affect your premium, too. Many companies offer accident free discounts, multi-line discounts, mutli-car discounts, etc.

With young people, grades can make a big difference. Typically, discounts are awarded to students who maintain a B grade point average. The reason for this is they are statistically less likely to get into an accident than a young person who is not maintaining a B average.

We've all been in the "young driver" category at one time or another.

So, to answer your questions, insurance-wise, you can get the same benefits as your 50+ year old father, but you will pay more for those same benefits. Right now, you may both have spotless driving records and the same address, but you do not have the years of driving experience that he does and therefore, are not the same risk.

Answer 3

If you Google info on traffic accident statistics, you will see that the greatest number of accidents are those involving young people between the ages of 16 and 24 and those drivers 70 and older.

Statistically, you, at 19, are more likely to be involved in a traffic accident than your father is. Insurance companies rarely take a young persons driving record into account but rather statistical averages. That's just the way it is. It is not age discrimination, it is merely statistics.

Younger drivers account for the most alcohol-related accidents also.

Your father, no doubt, pays a higher premium that the average man of his age due to his accidents. So he is paying a penalty.

Keep your driving record clean and your insurance rates will drop when you enter your mid-20's.

Answer 4

Insurance companies have been challenged in court over this and have won every time. They have the statistics to prove young males have more wrecks and cost them more money, therefore they can set the premium accordingly.

The reason the win is because they apply the same risk factors and charge less to older drivers. As long as that continues you and all the other under 25s are paying more.

Answer 5

Sort of. Age discrimination is illegal for jobs, but not for insurance companies. They have the statistics which prove that younger males have the highest accident rates. Since you are young, also be aware that even if your driving record is perfect, the insurance company can raise your rates based on your credit score.

Answer 6

Insurance for a younger male driver is higher not because of discrimination but because of statistics! It does not matter that you have an excellent driving record for your age. Statistics have proven that the young male driver is a higher risk. That's why your insurance is higher.

Answer 7

I think it should be seen as the same thing (equally as bad). But people in America are quick to call each other racists because thats what the media says. Black people in themselves have bread racism in this country ever since they won their god given freedom by saying ****** and cracker and such. Now when people say black guy they hear ****** and are quick to jump on their *** and tell them they are wrong for describing somebody, these people are usually black themselves! Personally i think it shouldn't matter and these people are making it matter which is wrong. I mean if the person isn't using it in hate shouldn't it be fine? I'm not racist even though i dislike most African Americans (not blacks; African Americans) because of the way they act by definition; like a ******; lazy, no good, cruel, unjust, vulgar (not because the color of their skin). I'm sorry if i rambled on a bit but age discrimination and race discrimination in my view are in fact the same thing depending on how they are used.

Answer 8

It's all statistics for auto insurance. People in you age group have by the far the most dangerous driving habits, inexperience combined with bad habits and it shows in the statistics. Your peers let you down on this one and everybody has to pay unfortunately.

Answer 9

Insurance companies are businesses they can set prices as much as they like.

Now with age discrimination they have good reason to set prices higher for younger people...they cause the most accidents...proven fact...is it fair to those who don't...no but it is how it is.

As for your stepfather...they want to charge him less than they probably should...thats up to them to lose money....but you are forgetting certain facts...they charge by driver, car, and area lived in.

You can't take one company's prices and apply them industry wide. Each company will charge differently.

Answer 10

There is only a fraction of discrimination today when compared to the recent past. Statistically you are a bigger risk. And most likely you will have an accident. We all paid more and now its your turn. Get over it.