Insurance and
youthful dirvers
by joan Mein
John Smith is 45 years old.
Jane Doe is 18 years old as is
Jim Green. They have this in
common: They each own a 1975
Chevrolet Impala. Each lives in
the city of Harrisburg. All
three automobiles are parked
on the street overnight.
Each carries the same cov
erage for personal injury,
comprehensive and collision in
surance. None has been in
volved in an accident.
What they do not have in
common are their annual insur
ance premiums. John, who is
classified a "non-youthful"
driver, pays $210; Jane, a
"youthful female" driver, is
charged $368 and Jim, the
"youthful male" driver, must
pay $609. (Rates are approx
imate and will vary slightly
among companies).
What are the reasons for
these discrepancies? Insurance
companies have amassed vol
umes of statistics. From these
statistics, they have deduced
incriminating evidence against
the youthful driver, -- under 25
years old, -- and the male
youthful driver in particular.
Those in the latter category
constitute 20 percent of the
driving public, but they are
involved in 33 percent of acci
dents terminating in claims.
As might be expected, driv
ers of any age or sex who are at
fault in an accident involving
claims of more than $2OO are
penalized by higher premium
rates.
The penalty is constant.
That is, for the first accident,
the premium in all cases is
multiplied by a factor of .55 and
the surcharge is added to the
basic premium for the next
three years.
That seems fair, --but let us
look at its result in our three
hypothetical cases. Let us as
sume each has been at fault in
an accident and damages are
$250.
The total penalty for Smith
will be $ll5. It is probable he
will elect to pay the $250
himself rather than involve his
carrier. This, of course, will
affect the statistics.
Our 18-year-olds might be
less able to pay their damages
out-of-pocket. The female will
be penalized $202 over the next
36 months for her $250 claim
and the male, a whopping $335.
In effect, youthful drivers
are penalized twice -- once in
anticipation of their involve
ment in an accident and, again,
if they should actually have
one. This seems highly discrim
inatory.
One local insurance execu
tive denies this is discrimina
tion. Frank Brown (not his real
name) says, "It is adverse se
lection."
Brown defines adverse se
lection as the companies' right
to accept or reject a proposed
insured on the basis of specifics.
For example, driving record,
moral turpitude and occupation
are factors to be considered.
Lifest les
Once accepted, age, sex, geo
graphical location, age of car,
marital status and statistical
data are some of the variables
which affect the premium rate.
"Discrimination," he says,
"is the pigeonholing of an indi
vidual into one of two possible
categories which results in a
penalty for one of the two."
It is Brown's view that
adverse selection and discrimi
nation are entirely different
concepts.
The insurance industry, in
these times of frightening in
flation, is a useful target of
criticism. In the area of auto
insurance, however; the
industry is not without diffi
culties of its own.
"Best Insurance News Di
gest" reports that, while pre
miums increased $2 billion in
1975 to $20.6 billion, claims and
expenses in the same yrar
exceeded this figure by seven
percent. Inflationary trends in
auto repair costs and medical
care are seen as the culprits.
Obviously, no business can
continue to operate at a loss.
Insurance companies make up
their losses with investment
income. It's a chancy business
and they would prefer not to
insure automobiles at all.
"One insurance company
attempted to eliminate this
coverage in Pittsburgh and
Philadelphia where los . ses are
heavy," said Brown. "The
Commonwealth of Pennsylvan
ia ruled they had to continue or
they would be unable to sell
automobile insurance anywhere
in the state. To cement the
argument, they would also be
denied the right to sell home
owner's insurance which is
highly profitable."
The industry seems to feel
as burdened as the insured..
Since coverage is compulsory,
the companies must make it
available and the public, if it
wishes to drive, must pay for it.
For youthful drivers who
find themselves the victims of
adverse selection, there is no
apparent relief in sight. The
office of the American Civil
Liberties Union reports there
are two letters filed on this
subject. One is a copy of a letter
to the Insurance Department of
the Commonwealth of Pennsyl
vania asking what is being
done. The other is a copy of the
reply which says, in effect,
"Nothing!"
A strongly organized and
noisy campaigh to draw legis
lative attention to the inequity
of the situation might start the
wheels of justice in motion.
Short of that course of action,
the judgment seems to be,
"Guilty until proven innocent."
111 M
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*IL 25 AUKI SHOW at the farm show complex I
THEAIER 'never to late' at harrisburg community theater I
FILM 'fat city' hacc, 8 p.m.
THEATER' never to late' hbg. corn. theater
jail. 27 HOCKEY rochester at hershey 7: 30 p.m.
PIANIKEWUM 1:30 to 3 p.m. william penn museum, I
I third and north streets
BOVVUNG bloomsburg at home 1 p.m.
I BASKEMALL caps at york college 8:15 p.m
jail. 28 RUNNING 2or 4 miles, meet the mad runners
at hacc, 1: 30 p.m.
HIKING 5.5 miles at camp mehaux, appalachian track
club, meets at fisher plaza, 12:30 p.m., 737-0164
CANDUI/GHTCONCERT yolk college 3:30 p.m.
IPIANEFARIUM william penn museum, 'winter sky'
jail. 29 %DICE RECIAL professor ann mathews 8 p.m.
at dickinson college, memorial hall
CONCERT james gentler and the key stone brass quintet
at york college, 3:30 p.m.
FlLM'voyage of the damned' york college 8: 30 p.m.
BASIKEIBAIL caps vs. eastern college , home
I jam 30 RECITAL diane henderson, soprano at messiah I
I college, 8 p.m.
I KEGGAR bsu at student center
jan. 31 FLUIE RECTICAL david bang at die kinson
college, 8 p.m. adm. $3
FACULTY CONCERT fames huey and the chamber players
12 noon hacc
feb. 3-4 HICHIXICK HIM FESITVAL 'the lady
vanishes,' life boat,' strangers on a train,' and 'frenzy'
. ------- ----------------
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- ARTEXHIBMONS V
%women in the arts till jan. 28 william penn memorial $
/museum
caitises choice exhibition doshi center for the
Icontempcirary arts till feb.2 1435 n. second st.
i maxfiel4 parish poster exhibit wilham penn museum
the photogmphy group doshi gallery feb. 4 - march 2
'opening reception sun. feb. 4, 3-5 p.m.
i scholastic ails exhibit till jan. 29 hacc
A - new realism three artists hbg. art, assoc. front st
( DEW )411 .= 0 " ( ) 0 4111=1.( )4/411110p< )41.M. )4i1M10.0411•1111PO4M14)4
ELLO HELLO!)
IS THEP:
ANYCAE
THERE 2,)
COLLEGE POETRY REVIEW
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c.c. reader
Did you ever...
compded by sue girokmi hum the
afternoon crouti in vemkndft
....have to give a speech on
Canada, and when describing
the hamburgers you come out
with the statement that Cana
dians have flat buns.
....have yourself thrown into a
trash can head first.
....go to a church for a wedding
and find out you were two
hours late. The people who
invited you forgot to inform you
of the time change.
....answer a question that was
not directed at you but you
thought it was.
....have a scarf pulled off your
head when talking to someone
you think is cute and under
neath the scarf lies what's left
of your hair.
....go to school during the fifties
and have your hoops fall out of
your hoop skirt when you were
walking up the stairs.
....act crazy while sitting in a
car at a gas station and when
you turned around you saw the
person in another car staring at
you. Even worse, you knew the
person!
....have to sip green paint out of
straw to do modern art and you
didn't hear directions and the
paint ended up in your mouth
instead of on canvas!
....come to a party and when
you go in you trip and fall and
then after try to explain you
weren't drinking before you got
there.
....go away for a weekend and
when you come back you find
your landlord had rented it out
because he thought you had
left. And then told you that you
would have to share it with
them.
Well that does it and as
Little Rose ann Roseannadana
says "It's always something!" If
you have any funny or strange
experience please write it down
(no name[ AND SUBMIT IT TO
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