Why can auto insurance companies discriminate on the basis of age and sex, but not ethnicity or race?

If you're a teenage male, you're doomed if you want to get auto insurance. You will pay exorbitantly more because the statistics say that you are more of a hazard. So you are not judged as an individual, but as a group of people.

I'm sure statistics can also show that certain nationalities and races are worse drivers -- case in point: Asians. And I'm part Asian, so I can make fun of my own people. =)

If insurance companies are always willing to discriminate on the basis of age and sex, why not race or ethnicity?

Because as soon as they even dare mentioning race or ethnicity they'll get accused of racism, possibly get sued over it by someone and possibly made to pay $2 mil by some great judge.

This, they do not want. I know it is not fair but our society isn't exactly fair.

Anyway, most teenagers won't be seen dead in an "uncool car". But if you get an "uncool car" you can pay cash for it, get liability only on it and your premiums will BEAT your 57 year old dad's (if he's financing a $40.000 SUV)

So not all is lost for the clever teenager.

You could start your own Insurance Carrier and start charging nothing, I am sure all 16 years old boys will love you. http://answers.yahoo.com/question/accuse_write?qid=20090212180007AANVsbK&kid=F4ZxHk34IjTd9nCrci_M&s=comm&date=2009-02-18+00%3A09%3A05&.crumb=

Here in British Columbia the government auto insurer cannot base a person's auto insurance rate based on their age or gender. Only on use and years licensed. However this is done based on being politically correct and trying to appeal to the voter, not based on any research or sound insurance principles.

If you can provide a link to your research that shows that race plays a factor in accident frequency and severity we would all be happy to review it. Somehow I doubt you'll provide such a link since there is no research that shows such. However there is plenty of statistics to show that age and gender do play a role.

Some states, they can't discriminate based on sex.

The reason why, is because statistics do NOT show that certain nationalities and genders are worse drivers. Calling Asians bad drivers, is perpetuating a racial stereotype.

Trust me, if the raw data DID show corrolation between race and claims, like credit scoring, they would do it.

Also - second thought. Without genetic testing for each driver, it would be darned hard to prove 'race'.