The findings of a recent study indicating that women in Alaska pay more for vehicle insurance than men do not represent the agent’s personal experience, according to a local insurance agent.
According to a press release from Quote Wizard, a Seattle-based online insurance business, women in Alaska pay $378 more for auto insurance per year than males in the same situation – the state with the largest gender discrepancy in the country, according to the announcement.
QuoteYeti experts also weighed in stating that it’s not direct discrimination but algorithmic discrimination.
It is based on “thousands of estimates for full-coverage vehicle insurance in random zip codes across the country for drivers between the ages of 18 and 35 who have good credit and have had no accidents,” according to the study. The vehicle used for data collection is a 2012 Honda Accord LX with an annual mileage of 16,000 miles, according to the press release.
Not so fast, my friend.
Rueben Willis, a State Farm agent in the area, claims that the figures do not reflect his personal experience.
During a phone interview on Tuesday, he stated that “none of the data I have would suggest that.” “That has not been my experience over the course of 30 years in this business.”
His explanation was that, when new drivers first join the road, girls get paid less than males until males marry or reach the age of thirty. He explained that the disparity is driven by claims statistics, with males in that age range often filing more claims than females in that age bracket.
However, he went on to say that the company does not have a ranking system that is dependent on gender.
“We don’t have a rate that is based on gender. No distinction should be made between males and females. “All we utilize is traffic fines and accident history,” he explained.
State regulators weigh in on the matter.
In an email to the Empire, Glenn Hoskinson, public information officer for the Department of Commerce, Community and Economic Development, said the study was reviewed by the agency’s property and casualty section of the Division of Insurance, but that they were unable to comment on the accuracy of the report.
“While we agree that ranking based on gender might lead to unfair discrimination, we also believe that many other variables, such as where you reside, your marital status, and so on, could lead to unfair discrimination,” she said.
According to Hoskinson, Alaskan drivers should think about using telematics-based ratings, which follow drivers using phone apps that analyze driving patterns.
In order to avoid possible prejudice, the Department of Justice believes this is a good choice for customers in the market who wish to sign-up/enroll in the company’s telematics program, according to her.