The study found that Gen Z drivers in 17 states across the U.S. pay higher auto insurance rates than millennials, despite having equal or fewer driving violations.
And to help you ease the hassle if you're shopping for insurance:
Tuesday, September 14, 2021
Subscribe to:
Post Comments (Atom)
Every generation paid higher premiums before they turned 25. Gen Z is 22 and younger while millennials are 25-40. Welcome to the real world Gen Z.
ReplyDeleteThere is more involved than how many traffic violation a particular group has. Also involved are accident rates, claims, how expensive those claims are, how many uninsured drivers are in your area, when was the last time you reported an accident. I know someone who paid a premium for car insurance because they hadn't ever had an accident. The insurance companies told her the odds were in favor of her having one, so the higher premium. You can't beat them!
ReplyDeleteSpent four years in Santa Clary County (San Jose, Sunnyvale). Paid high rates because of "high-density traffic".
DeleteMoved to Point Mugu (Oxnard). Paid even higher rates because "rural area, higher speeds."
Guess what happened when I moved back to Milpitas?
My advice to all young drivers; If you get a moving violation ticket hire a lawyer. This is also true for accidents. A lawyer will usually get a moving violation dropped or changed to an equipment failure violation that does not affect driving points. This saves money when your insurance runs a driving record and can make a difference with some jobs. I have a clean driving record even though I get a ticket about once a year for speeding. In truth it has been just over two years since I got one and it was a super speeder. That was a 6 hour driver training class ($125), lawyer fee ($240), and court fine for non-moving violation ($80) where I should have paid the 88 mph in a 55 for $540 and a $250 super speeder add on.
ReplyDeleteIf in an accident having a lawyer to give advice could save lots of time and money.
I have not had a speeding ticket in years. Partly, I am older and slower. Partly, I learned that being polite to the police goes a long way toward turning a violation into a gently worded verbal warning.
ReplyDeleteI worked with a guy once that was a speed demon: had a fast car and drove the hell out of it. He had a high priced lawyer on retainer. He beat every ticket except for in a small town near where we lived: they were serious about the revenue stream and punishing folks that did not reside in the town.
Then there was a guy that got a ticket in a speed trap. When he called to ask about the fine, they told him if he would pay an additional $150 processing fee, they would immediately reduce the violation to a municipal non-moving violation. He paid the fee.
This is nothing new. I’ve been in the insurance business for over 30 years. Actuarials have been studying loss ratios since insurance became a thing. Your rates are based on the average risk of a given set of demographics. That’s why teen girls generally pay less than teen boys. Your actual driving record allows you to get the lowest possible rate within your specific demographic for any particular company. So, you want to go street racing and rack a bunch of tickets. Knock yourself out. Good luck finding insurance outside the assigned risk pool for than $1000 per month.
ReplyDeleteContrary to popular belief, insurance companies do NOT get to arbitrarily set premium rates. All rates have to be approved by the state's Insurance Commission. A company files a request for increase. The Commission then uses in house or outside contracted actuaries to review the request. The actuaries then pass a recommendation on to the Commissioner, who can accept, accept with modifications, or reject that recommendation.
ReplyDelete