Drivers: Don’t allow insurance companies to use speed camera data. We don’t want bad drivers to pay more.
Also drivers: Insurance premiums are too expenvie. Do something.
Governor: 🙆
Drivers: Don’t allow insurance companies to use speed camera data. We don’t want bad drivers to pay more.
Also drivers: Insurance premiums are too expenvie. Do something.
Governor: 🙆
I agree a state monopoly on insurance would probably be beneficial but that doesn’t mean we have to get rid of different rates. Riskier drivers need to pay more because they’re more likely to take money out of the system. This doesn’t mean they have to go into a higher risk pool, it could be just one big pool but balancing money in and money out fairly will require different rates. It’s unfair to charge a person who barely drives their 10 year old car the same price as a 16 year old with a Porsche, one of those people is way more likely to have an accident, and a costly one at that, and take out more money from the pool and thus get disproportionate “benefit” for the same price.
They don’t need to pay more. It just feels more fair that way, on an individual short term basis.
But when thousands or millions of people are all pooled together, the individual difference in risk gets flattened out to be practically negligible.
To your example of the 16yo with a Porche. When you’re young, you get car insurance for cheap. Then as you get older, you pay the same while you’re risk that day/month/year goes down. But after your whole lifetime, in the end it’s all the same.