Why don't insurers just raise all rates 50% right now?
My guess is it's because there's a competitive market.
This doesn't change this. This allows for better price discrimination than our current tables based just on age, car, neighborhood, gender, etc. This will raise rates for high-risk drivers and lower them for low-risk drivers. If the insurer does the first and not the latter, the latter will go to an insurer who does.
It seems like the view here is that everyone will only do the former, but again: why don't they do that right now? Why does the effect of competition vanish in this case?
"Every insurer will use this technology eventually" isn't an answer. Every insurer has accident data by age. As a result, they offer lower rates to lower-risk age groups.
It's priced on your credit score, so if you're poor you're screwed, and it's priced on whether you're married too.
Here's how to get the best rates in the current system. In addition to avoiding tickets/accidents become a 50 year old female married driver who has an excellent credit score and drives a lower trim subaru crosstrek.
Or they could price based on actual driving behavior. Cue outrage.
My guess is it's because there's a competitive market.
This doesn't change this. This allows for better price discrimination than our current tables based just on age, car, neighborhood, gender, etc. This will raise rates for high-risk drivers and lower them for low-risk drivers. If the insurer does the first and not the latter, the latter will go to an insurer who does.
It seems like the view here is that everyone will only do the former, but again: why don't they do that right now? Why does the effect of competition vanish in this case?
"Every insurer will use this technology eventually" isn't an answer. Every insurer has accident data by age. As a result, they offer lower rates to lower-risk age groups.