CBC News reports that the province of Newfoundland plans to ban the use of age, gender, and marital status in determining auto insurance rates by August 2005.
The province’s Government Services Minister Dianne Whalen announced the changes on Thursday, saying they could save young drivers up to 46 per cent a year on insurance fees.
“It isn’t fair: 85 per cent of young drivers who do not have accidents have to pay huge premiums for the 15 per cent who do,” she said.
From the article it appears that there will be one base rate for everyone with the only thing that would raise your rates is your driving record. At first glance this might sound good; especially if you are under 25 or a parent paying insurance for your child. What is not mentioned is that the rates for all of the ‘low risk’ drivers must now go up.
Do you want to save money on your auto insurance? Why? It is not fair for you to find a company that only covers good drivers. You should help out all those bad drivers and get your insurance at a high risk company.
Or better yet – lets do away with age and gender for life insurance! Why not! Its not fair that an 80 year old has to pay 3 or 4 times as much for life insurance as a 30 year old.