Insurance Question

[habahaba]

Why does policy premium differ based on age when only Comprehensive is changed.

It's not like the bike is more likely to catch on fire or get stolen if you are 20 rather then 55.

[Rainman]

Good question. But of course you realize that premiums are based on actuarial figures (statistics), and age has a lot to due with who and how often claims are submitted based on the age - and record - of various drivers/riders.

It's legalized gambling in a sense. If you knew exactly which fires, floods, animal collisions, and thefts you would be subject to before hand, you might either need more or less insurance (or a savings account of a particular size). But you don't, and the insurance companies have a upper hand. They do know statistically what your age group will cost them, and they charge accordingly.

[habahaba]

Originally Posted by Rainman

Good question. But of course you realize that premiums are based on actuarial figures (statistics), and age has a lot to due with who and how often claims are submitted based on the age - and record - of various drivers/riders.

It's legalized gambling in a sense. If you knew exactly which fires, floods, animal collisions, and thefts you would be subject to before hand, you might either need more or less insurance (or a savings account of a particular size). But you don't, and the insurance companies have a upper hand. They do know statistically what your age group will cost them, and they charge accordingly.

I guess that makes sense. Thank you

[R1HOOLIGAN]

I'm a 58 y/o man and I pay $35/mo for max coverage. Man, what a deal! Heart attacks, prostate problems, plumbing problems, occasional dimensia, memory loss, sore joints, etc. in exchange for cheap insurance premiums! Sure as hell can't beat that with a stick!!! Well, you could, but I wouldn't feel a thing!