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Who came up with this brilliant position……Corzine? These flies in the face of conventional wisdom as evidenced by NASCAR. Most of them aren’t educated but can drive pretty damn well.
if you truly look at the statistics of those who have crashes and compare to the occupation, age, and the many other factors, you will find that these actuarial numbers are correct. but remember that this is just one criteria that we look at in creating a rate for the right driver. remember that a major factor is their driving history. age and experience comes next. then all the other factors. it is amazing that folks think it’s a piece of cake to solve on costs of premium and that my price should be the same across the board. each company has unique set of factors.
The FTC report also concluded that these factors are not a proxy for race but uneducated and/or uninformed people keep pushing to make insurance “fair” so that there are fewer pricing differences rather than more; in this way, they expect premiums to be almost identical for those in a particular geographic area; instead of allowing companies to compete with more pricing options, they want leveling. But when you look further, the result is that those who benefit from level rates are those with more risk; the better drivers subsidize those with less than stellar experience. Why should insurance rating be FAIR, as if someone who pays higher rates is being treated unfairly compared to someone who has a lousy driving record? We dumbed down the education system to make everyone feel good but that didn’t help grades. Why should insurance be level at all? Why do any underwriting if the price is predetermined?