I have heard that insurance companies are considering another category for determining how much you pay. It's your race. Does anyone know anything about this?? And if it is true, do you think they have crossed the line?
by 
King of Sexytown
ANSWERS: 5
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Using one's race to determine rates or eligibility would be a violation of federal law. There is an arguement going on about whether or not to continue using credit-based scoring, which some people argue is tied to one's race. I personally don't agree with that opinion.
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whoops
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auto insurance does that with gender...men and women... based on statistics. men pay more because they crash more often.
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ignore all the above answers, no it is not true that race is going to have any part of rating up insurance premiums. However the rules of discrimination law do not apply to the insurance industry. We as an industry are in the business of legal discrimination. It is against federal law to discriminate based on age, and weight, but age is one of the main things that car insurance is based on. Age and height to weight ratio are two of the main basis for premium on any health or life insurance policy. If the companies have enough actuarial information to back up how they produce their premiums they can discriminate on basicly anything they feel necessary.
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I think the insurance thieves crossed the line decades ago. For me, the final straw was basing rates on one's credit history, which has absolutely NO bearing, especially with regard to auto insurance. The simple fact is that if you take out an insurance policy through one of these companies and then do not pay the required premiums, they do not have to honor any claims made. Also, there's the fact that if you never, ever have to make a claim, you never get anything out of the service. Peace of mind alone isn't a valid reason for throwing money away. At the very least, insurance companies should be required to offer some kind of yearly rebate for never having made a claim of any kind. Adding the race card is just another excuse to continue ripping off their customers.
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