Why are insurance companies allowed to discriminate?

They are allowed to discriminate based on age and genders...isn't that illegal? LOL Someone please explain to me...It's like if they had a White and Non-White statistics and based it off of that!

Well I do know that its PROBABILITY but what if I say its probability that whites are more likely to not get in car accidents versus blacks?

If you were an insurer would you sell a 96 year old life insurance ?

If you were a 20 year old would you want to have to pay 10x more for your life insurance because the insurer had been forced by law to insure the 96 year old on the same terms as your self ?

In most countries discrimination by age is permitted. So is pricing differences based by postcode, type of property insured & criminal history.

You are right, you could probably mount a real case from an actuarial point of view to price insurance differently depending upon a lot of factors including racial ones but this has not been allowed in most western countries for a long time. (there was a 1926 UK court of appeal case in which an insurer got out of paying a claim because the policy owner had been born in romania and was therefore obviously not as honest as an Englishman - but this is a bygone time, fortunately).

I am assuming you are referring to auto insurance. If this is correct, they have an abundance of statistics that determine the rates that they charge. This is based on how long the individual has held a license, the age of the individual, any prior accidents the individual was found at fault, they type of auto being insured. In addition, the step/points on your license determines your insurance rates. These factory are not considered discrimination, it is the insurance industries basis for determining insurance rates.

However, the insurance company can not charge different rates based on sex, religion, or race. This would be considered discrimination.

Best wishes.

They dont discriminate. They pay millions to have studies done to show the probability of people from different ages and whatnot and what is most likely to happen. It is kinda the same thing as your insurance on a sports car is always going to be higher than a sedan. Historically people are less responsible and more likely to do something foolish while in a sports car so they can charge you extra for it.

It is not discrimination, it is the law of probability.

If they can show documentation certain age groups and certain genders get in more accidents, they can justify charging them a higher rate.