Eleanor and her father have identical driving records for the last ten years and neither one has had an accident or insurance claim. Despite that record She pays more for car insurance than he does. What might be the reason for this?

Question

Quizplus · Accepted Answer

Insurance companies use statistical models to determine rates, and it is possible that these models may factor in demographic information such as gender, age, and marital status, which could lead to differential pricing despite identical driving records. This practice is known as statistical discrimination.

Eleanor and Her Father Have Identical Driving Records for the Last