PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Should using driver demographic information be illegal?
Isn't it unfair that companies use statistics to determine rates? I don't understand why it's legal for them to use personal information to price car insurance.
Sophie Newman · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It can seem fishy when
car insurance companies
use statistics to set prices for their customers. That said, companies are worried about insuring customers who are risky and will cause a lot of damage. To alleviate risk, companies calculate the appropriate cost based on your personal information, such as:
- Age
- Location
- Gender
- Marital status
- Education
This helps companies predict how much drivers may potentially cost them. However, you don’t have to worry about being a victim of demographics. There are laws against redlining. These laws prevent an insurance company from denying coverage based on your geographic area or without any underwriting basis.
Don’t stress if you have tickets, accidents, or are a young driver. While you may belong to one of these statistically riskier categories, you can still qualify for discounts through your company. Common discounts include a driver training course or a telematics program.
If you need help finding cheap car insurance, use
Jerry
. Jerry is a licensed broker that finds the best rates for you from up to 50 top insurance providers.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
