If statistics show that males are a high risk group and should be charged more for auto insurance, why aren’t their studies done on certain racial groups to determine which ones are riskier drivers?
There are certain stereotypes that tend to ring true such as Asians being bad drivers. I’m half-asian and have seen this countless times. Why aren’t Asians charged more for insurance? Is it because insurance companies are scared to show a racial bias? And yet for decades, it’s normal and acceptable to show a sexual bias?
"let’s face it, here in the USA, most people have mixed origins."
That is very true, however, most people identify themselves as one particular race. When the government comes out with consensus data, they don’t have categories for 10% white, 20% white, 30% white, etc. You’re either white or you’re not.
So yes, race is quantifiable based on a person’s identity and a general consensus.
I have no problem with a guy that has 5 DUI’s getting charged higher rates. What I do have a problem with is being a male driver that has had no accidents but was forced to pay higher rates with the ASSUMPTION that I would get into accidents.
Obviously if you do the crime, you do the time. But insurance companies shouldn’t punish innocent young men just because there’s a possibility of something happening in the future.
And good driver discounts don’t matter. I had that discount plus driver training discounts and it still was nowhere near the cost of insurance was for female drivers.
Sex discrimination isn’t allowed in ALL states, with auto insurance (or life insurance, even though women live longer). So that’s on a state by state basis.
Regarding discrimination in auto insurance rates, insurance companies decide how to discriminate, based on the claims data. So, the guy with 5 DUI’s gets lumped in with all the other guys with 5 DUI’s, and they look at the claims, compared to the guys with NO duis, and as long as there’s a difference in claims, that discrimination is LEGAL.
However, federal law currently prohibits ANY discrimination by ANYONE based on race, national origin, religion, etc. Additionally, insurance companies haven’t compiled any data showing, as a group, that once race has on average more accidents than another race. Plus, race is very, very nebulous – after all, what you’re talking about, is the color of someone’s skin. You’d have to get a color card, and match up their skin tone, and then put them in a group that way? Because let’s face it, here in the USA, most people have mixed origins.
"Asians are bad drivers" – does that mean immigrants, or if your great great grandfather immigrated here from China, and you have no "asian" features, because of him you get those rates? It’s pretty impossible to say.
Don’t forget – not all discrimination is wrong, or illegal. Yes, teenage boys have more accidents than anyone else. That’s a FACT, proven by data – it’s not ILLEGAL discrmination. And when you go out to a restaurant, and order a bacon cheeseburger, instead of liver and onions, well, YOU are practicing discrimination, too! That doesn’t mean it’s wrong, or illegal.
These days, people "feel" more than think. The word "discrimination" has a lot of negative connotations – but most people lose sight of what it really means – picking one thing, instead of another thing, for ANY reason.
RSS
February 14, 2010
My name is C.J. and I was born in Shanghai, China. If you want to know about me, please visit This is an example for you of "About Me" area.
February 14th, 2010 at 11:03 am
good question and a very nice information…
February 14th, 2010 at 1:24 pm
Because no scientific study has been done nor statistics kept
References :
February 14th, 2010 at 1:49 pm
That’s a very good question that has been asked many times by many people. Most discrimination laws are in place relate ONLY to the workplace. A business can charge whatever they want to whomever they want so long as that business is not regulated under federal or state laws (like utility companies, hospitals, etc). Statistics have been shown that young males are worse drivers than young females and laws have sided with insurance companies that charging them more is legal because it costs the insurance companies more to insure them. There are no viable statistics correlating driving skills and race. If there were valid, government approved statistics companies may be able to charge more based on a certain race but as of right now they do not. Even if one company did start charging one race more another company wouldn’t and they would get all of the business of the other company. Good question.
References :
February 14th, 2010 at 2:36 pm
If auto insurance companies were allowed to be racist, minorities would all raise hell. Sexual discrimination is still considered normal even here, today.
References :
February 14th, 2010 at 2:47 pm
Sex discrimination isn’t allowed in ALL states, with auto insurance (or life insurance, even though women live longer). So that’s on a state by state basis.
Regarding discrimination in auto insurance rates, insurance companies decide how to discriminate, based on the claims data. So, the guy with 5 DUI’s gets lumped in with all the other guys with 5 DUI’s, and they look at the claims, compared to the guys with NO duis, and as long as there’s a difference in claims, that discrimination is LEGAL.
However, federal law currently prohibits ANY discrimination by ANYONE based on race, national origin, religion, etc. Additionally, insurance companies haven’t compiled any data showing, as a group, that once race has on average more accidents than another race. Plus, race is very, very nebulous – after all, what you’re talking about, is the color of someone’s skin. You’d have to get a color card, and match up their skin tone, and then put them in a group that way? Because let’s face it, here in the USA, most people have mixed origins.
"Asians are bad drivers" – does that mean immigrants, or if your great great grandfather immigrated here from China, and you have no "asian" features, because of him you get those rates? It’s pretty impossible to say.
Don’t forget – not all discrimination is wrong, or illegal. Yes, teenage boys have more accidents than anyone else. That’s a FACT, proven by data – it’s not ILLEGAL discrmination. And when you go out to a restaurant, and order a bacon cheeseburger, instead of liver and onions, well, YOU are practicing discrimination, too! That doesn’t mean it’s wrong, or illegal.
These days, people "feel" more than think. The word "discrimination" has a lot of negative connotations – but most people lose sight of what it really means – picking one thing, instead of another thing, for ANY reason.
References :