I have been shopping around for car insurance and at progressive I can pay 180$ a month for my own policy. Why can they just charge me more expecting me to crash/ have an accident more than a woman?
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Their rates are based off of a huge amount of gathered statistics and risk assessments of the population as a whole. Teenage males are far more likely to get into an accident that costs them serious money. They arrange it so they make the same amount of profit % from you as they do teenage females.
Also as you drive and accrue a record they will begin to develope an individual profile to determine your rates. Those will be based off of your individual choices.
Yes it is discriminatory, but based on Data, and they aren’t a governmental agency which means they aren’t held to add high a standard.
Similar to how somebody with minimal credit will have trouble getting a higher limit on a credit card, or approval for home ownership loan, etc.
You have to build a record of responsibility, safety, etc.
Younger people/new drivers do not have as much experience and haven’t solidified a record of, in this case, driving safety. Insurance rates start higher for new drivers because it has been shown that new drivers are more likely to get into accidents or have other damage. After 10 years, if your driving record stays good, it’ll go down.
Insurance companies are like casinos. They want the math in their favor.
Statistics say you will cause more crashes than a woman at the same age as you. You will cost them more money than they would take in if they charged you the lower price.
That said once you’re over 25, you will pay less than women for insurance (because of those same statistics)
To answer your question, they can charge you because they can. Some states have made these charges based on sex illegal.
Teenagers in general are more likely to have a crash than an adult, regardless of the gender of those involved. Insurance companies use a complex series of calculations to figure out what premium to charge a customer, and length of time you’ve been driving is a massive factor to consider. Most adults will have been driving longer than most teenagers.
It is talked about, but you’ve not been driving as long as some other people. The more driving you do, and the more talking about it you do with other drivers, the more often this topic will come up. It’s annoying, for sure, but proving you’re a good driver will lower the premium.
Statistically women get in more vehicle collisions but when they do it’s hitting someones bumper at 10 mph. When men get in collisions it’s at 70 mph and they take out 6 cars and somebody’s house.
It has nothing to do with fairness or equality. Men cause more damage ergo men get charged more it’s simple math.
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