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jpak

(41,742 posts)
Tue Jul 19, 2016, 04:24 PM Jul 2016

Auto insurer asks to raise rates of Maine seniors based solely on age

Source: Portland Press Herald

In an unprecedented move, insurance provider Progressive Corp. is seeking state approval for rate changes that would allow the company to charge older Mainers higher auto insurance premiums based solely on their age.

The proposal by the Ohio-based company would apply to new customers in Maine who had reached a certain age, according to documents filed with the state Department of Professional and Financial Regulation’s Bureau of Insurance.

A hypothetical example that Progressive provided to the bureau shows a 65-year-old being charged 6 percent more than a 64-year-old based solely on the customer having reached age 65.

Increasing rates for seniors based on their age alone would be a major departure from the way most insurance companies operate nationwide and in Maine, which has a population that leads the states in average age. Traditionally, healthy drivers with flawless driving records see their premiums decrease as they age.

<more>

Read more: http://www.pressherald.com/2016/07/19/auto-insurer-asks-to-raise-rates-of-maine-seniors-based-solely-on-age/



10 replies = new reply since forum marked as read
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Auto insurer asks to raise rates of Maine seniors based solely on age (Original Post) jpak Jul 2016 OP
Thank you Flo? keithbvadu2 Jul 2016 #1
Don't they do this to younger drivers based solely on age? Renew Deal Jul 2016 #2
Yes. Statistical Jul 2016 #3
Only if you are unmarried...... happyslug Jul 2016 #5
Today young men pay more for insurance than young female drivers (as they should due to higher risk) Statistical Jul 2016 #6
In my state they do, State Constitutional Amendment requires it happyslug Jul 2016 #7
Yes, but part of the problem is teens have no personal TexasBushwhacker Jul 2016 #10
If they can show a statistical correlation between high age and accident rate I don't have a problem Statistical Jul 2016 #4
+1 Xipe Totec Jul 2016 #8
Anyone who has Progressive should contact them STAT TexasBushwhacker Jul 2016 #9

keithbvadu2

(36,369 posts)
1. Thank you Flo?
Tue Jul 19, 2016, 04:44 PM
Jul 2016

I read once that the circle symbol of the thumb and forefinger (Brazil?) means axxhole, instead of OK.

 

happyslug

(14,779 posts)
5. Only if you are unmarried......
Tue Jul 19, 2016, 05:03 PM
Jul 2016

The reason for this is unmarried males have a high accident rate. Once their are married, the accident rates drops like a rock.

Till the early 1970s, Insurance companies would only raise the rates on unmarried males between the ages of 16 (or whatever the age you could get a driving license) and 30 unless their married. In the early 1970s this was found to violate various states Equal Rights amendments and later the 1964 Civil Rights Act on the Ground they treated women different then men of the same age. The problem was young women just did NOT have the number of accidents as young men did. To solve this "problem" the rates of unmarried women under age 30 were raised to equal the rates of unmarried men below age 30. Thus both sexes were treated the equally even through their accidents rates were NOT equal.

This is true today, unmarried women below age 30 pay the same rate as unmarried men below age 30, even through the accidents rates are different. Someone have to pay for those young men's accident rates.

Statistical

(19,264 posts)
6. Today young men pay more for insurance than young female drivers (as they should due to higher risk)
Tue Jul 19, 2016, 05:06 PM
Jul 2016

Not sure where you get the idea they pay the same rate regardless of sex.

 

happyslug

(14,779 posts)
7. In my state they do, State Constitutional Amendment requires it
Tue Jul 19, 2016, 05:18 PM
Jul 2016

My state (Pennsylvania) has long ruled that under the STATE EQUAL RIGHTS AMENDMENT, you can NOT charge men more then women. Thus in my state you can NOT charge different rates based on sex. I do not know how other states have treated their Equal Rights Amendments and laws but that is the rule in my home state.

As I said the 1964 Civil Rights Act is a big question mark on that issue. I have NOT reviewed the law on insurance and the 1964 Civil Rights act, but if other states do continue to treat the sexes differently, it must be do to rulings that the 1964 Civil Rights Act does not apply to insurance laws, or that the difference in accidents rates is enough to justify a difference in treatment under the 1964 Civil Rights Act.

TexasBushwhacker

(20,044 posts)
10. Yes, but part of the problem is teens have no personal
Tue Jul 19, 2016, 05:57 PM
Jul 2016

driving record. It's kind of like trying to get a home loan if you've been paying your bills in cash. Having no record is as bad as having a bad one.

I'm 59. I've had Progressive for about 10 years and have had no accidents. But if I have to worry about my rate going up in 6 years, I might have to shop around.

Statistical

(19,264 posts)
4. If they can show a statistical correlation between high age and accident rate I don't have a problem
Tue Jul 19, 2016, 05:00 PM
Jul 2016

The same process is used for young drivers. If you are a 19 year old male and have no accidents, tickets, or other infractions you will pay more for insurance than someone who is 35 year old female with the same record.

So if even among drivers without accidents or other infractions drivers older than 65 have higher probability of an accident than drivers aged 64 or less I don't see a problem. Then again the article is light on details.

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