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VIC Is Car Insurance Being Discriminatory?

Discussion in 'Insurance Law Forum' started by Rosco12, 17 June 2016.

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  1. Rosco12

    Rosco12 Member

    17 June 2016
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    I was curious as to whether a car insurance agency charging me $350 more than my female counterpart due to my gender and perceiving me as a more 'reckless' driver is illegal?

    I believe it's inherently sexist and after reading the sex discrimination act. It seems as though we are being treated differently due to our gender; thereby breaching the act enacted by our commonwealth parliament.

    Am I correct in my ideology that this is inherently sexist?
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Gender discrimination can occur when a person is treated less favourably than a person of a different sex would be treated in the same or similar circumstances. However, the converse argument from an insurance perspective is: that 'male' drivers, just like 'young' drivers generally pose a higher risk to insure. Insurers do have a right to set their pricing commercially. Premiums are also variable based on driver specific factors such as your claims history, accident and fault history and the type of car you drive.

    At the end of the day, insurers must bring in a certain amount in premiums to cover their risk, no matter who is paying it. Therefore, it does seem fairer that the high-risk categories pay more.

    While you may be able to put forth a technical argument on gender discrimination, what do you expect will be the result of complaining about sex discrimination? Do you think your premiums are going to come down? Or will your female counterpart's premiums simply go up to match yours? Couples are no better off in this situation.

    Does that also mean young people are being discriminated against because of age? If their premiums go down, older people will naturally cop a higher premium to account for a reduced premium for younger people? And what about pay gap discrimination against women and gender discrimination in pricing - whereby women are charged more for the same products than men? Where do you stop?

    All I'm saying is that its short sighted to complain about your little injustice, paying a few more bucks for car insurance. There are women out there who are working their buts off doing the same work as their male counter parts and getting paid tens of thousands of dollars less every year.

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