By Amy E. Feldman
PHILADELPHIA (CBS) – Is it legal to charge different insurance rates to people based on things other than their driving record?READ MORE: Philadelphia Police Searching For Suspect Who Stole Car With 6-Year-Old Girl In Backseat
An Arkansas teenager drove himself to his driver’s license test. When police were called because he drove there without a license, he fled and hit the patrol car chasing him, causing $6500 in damage. Taa daa!
And if you think his insurance rates are gonna be high, how about your rates if you’re insuring a new driver?
You may not realize it, but rates are determined based on risk factors other than your driving record.READ MORE: North Philadelphia Community Welcomes Home 3-Year-Old Boy After Hit-And-Run That Also Killed Mother
Age is a factor – the highest rates are charged to people between the ages of 16 and 25. And despite the bad woman driver stereotype, men pay an average of $15,000 more for car insurance over their lifetime than women.
Single people pay more than their married counterparts. And where you live matters – urban dwellers pay more than those in rural areas with fewer thefts and less traffic.
The reason it’s legal is because studies have shown that, statistically, some groups of people in some areas have more accidents – even if the particular individual has a clean record.MORE NEWS: Local Doctor Joins 14 World War II Veterans In Hawaii Visiting Pearl Harbor On 80th Anniversary
Turns out that even after the Arkansas teen’s parents pay for the criminal lawyer, they might be saving money in insurance costs because he won’t be driving anytime soon.