Is it sexism to charge higher insurance rates for new male drivers with no record?

[elfkin477]

@Really_Not_All_That_Bright

Senior citizens are nearly as dangerous as teenagers, but their insurance rates aren’t commensurate with risk.

Yes, they are, at least in states that allow it. In many states elderly drivers pay more for car insurance than younger (but older than age 25) drivers do.

[Frisco]

@Cyberhwk

I’ve always wondered if there was a business model where you’d sign a contract for an extremely cheap rate under the condition you also sign over significant collateral or agree to future payments in lieu of higher premiums should you make a claim.

I believe the clearest example of this is what is commonly called being self-insured. You pay nothing and accept all of the financial risks, be it collateral (property) or cash. Or you have very high deductibles and lower your premiums by transferring only the risk of a catastrophe – some event that is unlikely but would be devastating financially if it occured. There is no purpose in buying insurance if your aren’t transferring the volatility of the risk. Without that transfer of risk, those agreements are just loans.

[iamthewalrus_3]

@Cyberhwk

I’ve always wondered if there was a business model where you’d sign a contract for an extremely cheap rate under the condition you also sign over significant collateral or agree to future payments in lieu of higher premiums should you make a claim.

In California, at least, you are allowed to post a bond rather than carry liability insurance.

Presumably, if you didn’t have enough liquid assets, you could take out a loan to post that bond, but the economics probably don’t work out very well.

[kidchameleon]

@Le_Jacquelope

I’ve been the lone voice in the dark for years arguing that it’s unfair that a man is tattooed from birth as a higher risk by auto insurance companies and life insurance companies alike, and are stuck with higher insurance rates.

That’s factually incorrect.