When searching for inspiration for this blog post, I came across an article about age discrimination in financial services, particularly with regards to car insurance. What was particularly striking to me though was the fact that, rather than the swathes of young drivers this blog is aimed at, the article was more concerned with the situation of the elderly when trying to obtain car insurance.
I have to admit, I am somewhat oblivious to the plights of older people when trying to obtain car insurance, and being only 21 myself, I’m certain that it is not an issue I will need to worry about for a long time. Despite this, it got me thinking – recent changes to the way insurers calculate their car insurance premiums mean that there can no longer be any gender discrimination; essentially, women and men will be charged the same. Now don’t get me wrong – I agree with this new bit of legislation; but the fact is that men were charged more because they posed a greater risk to insurance companies since they are reportedly more often involved in more high risk accidents than women. By the same logic, I propose that age discrimination should be similarly outlawed.
My thinking is this – it is a fact that younger and newly qualified drivers tend to have more accidents on average than any other age group, and for this reason pose a higher risk to insurers. However, the same is also true of male drivers compared to female drivers, and yet the gender discrimination is now illegal. Therefore I ask, why shouldn’t younger drivers be afforded the same options? It is sad that the current prices charged by many insurers price young drivers out of the market, and leave many unable to afford to own and use a car.
Could this work in practice though? I actually see no reason why not. In the USA, insurance companies insure the car rather than the person driving it, meaning that there is absolutely no discrimination on any basis, unlike here in the UK. Instead, more powerful cars are considered higher risk, and, in my opinion, rightly so. Only Young Drivers believe that young people can be incredibly capable drivers, and that is why we offer such competitive rates. I’m calling for younger drivers to be judged on their individual abilities, rather than their date of birth. Who’s with me?