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Yeah, right. The only way insurance companies are competitive and pricing risk correctly is if there's a magic responsibility fairy that bestows wisdom and driv

by aianus 11y ago

Yeah, right. The only way insurance companies are competitive and pricing risk correctly is if there's a magic responsibility fairy that bestows wisdom and driving ability upon all at midnight on their 25th birthday.

brudgers 11y ago
If the band is 20-25, they charge everyone based on age 20, otherwise they would be subsidizing high risk drivers instead of generating more profit on 21-24 year olds. Actuaries are applied mathematicians, and typically of above average intelligence compared to the general populace.
- aianus 11y ago
  Why would the band have to be 20-25 for every insurance company in the country? Why not be innovative and create an accurately priced 24-25 band and undercut your competition? I'll tell you why: because insurance companies are a rent-seeking oligopoly with an enormous barrier to entry. They just sit there and make a fortune doing jack shit.
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