Insurance

[iamlowsound]

I was just running some online quotes for car insurance. I am a 20 y/o male with one accident and one ticket. For my 1994 VW golf it would cost me $249 a month. Just for fun I decided to see what a female with the exact same driving record would pay, $159 a month. Ridiculous! Both drivers (me and the hypothetical female driver) have both proven their driven capabilities (or lack thereof, depending on how you look at it) with 4 years experience. Is there any logical reason why insurance is that much cheaper for a female? I know the stats, males are more likely to have a major accident, but females are over 4 times more likely to have a minor accident such as rear-ending someone at medium speed (30-50km/h). Makes me mad, on the plus side I can afford that so I might be putting my car on the road soon.

lowsound

[PSPookie]

The higher risk of a major accident means greater variance in the statistical model for young males. It all boils down to the nature of risk and insurance. You pool risk to reduce variance -- bringing a higher variance into the equation means you have to pay more.

Consult your friendly neighborhood actuary for a more detailed explanation.
www.soa.org used to have an excellent paper explaining it but I don't know if it's there anymore.

[tplyons]

Yep, we males are screwed until we're 25. Welcome to being screwed by statistics.

[Disco_Gee]

Originally Posted by tplyons

Yep, we males are screwed until we're 25. Welcome to being screwed by statistics.

Yep. The funny thing is that of all the people I know personally, the females are the ones who've had more accidents.

[gold_member_321]

One accident for me and I pay $2200 a year.

[Dangle]

get older and or married and it'll be cheaper.

[selfblessed]

Originally Posted by Dangle

get older and or married and it'll be cheaper.

Yup. I have a perfect record across the board. I was raped for years by the insurance company. My wife...(Well my girlfriend at the time)she gets in an accident, 3 months later her rates go down like 40 bucks a month. BS! What you can do, and all of you other young "male" drivers out there is this. Drive carefully. Stop being dumb. Hopefully after about 6 or 7 generations the stats will show better driving by young males drivers thus lowering the rates of your great to the 7th power grandsons.



Oh yeah, check your tire pressure!

[Vic Winters]

Yet another reason we deserve to make more money than them.

[selfblessed]

Originally Posted by Vic Winters

Yet another reason we deserve to make more money than them.

ouch!

I wish this insurance stuff was done on an individual level. Factoring in where you live, distance/amount of driving and YOUR driving record. Just because some a holes before me sucked at driving doesn't mean I do.