Aug 2, 2017
Car insurance companies are now unfairly charging Centennial drivers in Ontario the kind of inflated premiums that Boomers, X’ers, Y’ers and even Millennials were never subjected to. These new rates range from the virtually unaffordable to exorbitantly high – if you’re an iGen’er who is fortunate enough to meet the low risk criteria of standard actuary eligibility.
So this begs the question - why haven’t insurance companies made it unaffordable for previous generations to be insured (in their first five years)? Do the statistics claim this younger cohort poses a higher risk for payout than their predecessors at the same age?
While insurance companies are justifying the high increase on cell phones coupled with an increased population density in urban centers, pundits like Globe & Mail’s Personal Finance Columnist Rob Carrick, and National Driving columnist Peter Cheney, argue that the inflated rates still don’t justify the numbers. They are purporting it has less to do with risk assessment and more to do with fraudulence in the private insurance sector. It’s not as if they dispute the actuarial evidence that centennial male drivers in densely populated, high traffic urban areas (like that in the GTA) are at higher risk of payout.
What they are contesting is whether or not the degree of risk reported on the actuarial reports warrants the steep insurance costs. After all, if payout is unreasonably higher than what is paid in, it’s bound to raise more than just a few suspicious eyebrows. Perhaps there’s more to this than cellphones, road conditions, gender, age, location and vehicle type?
So if you are a new "centennial" driver (or the parent of one) it is best to do your research before signing on with the first insurance company that gives you a quote to be sure that you are getting the best coverage.