nissanfanatic wrote:^Hey buddy... Florida drivers are all professional drivers compared to VA drivers..
Insurance companies probably just charge more for young drivers because they know we will go without most necessary supplies to have the ability to drive. We have to make it to class/work. If you are married, well your significant other can usually drop you off at work. Its easier to have one vehicle. Single, 21, chances are you have places to be that are important..
Speed doesn't cause wrecks. Speed is a force multiplier. Errors in judgment cause wrecks..
And insurance companies make their billions by the fact that insurance is required by law. Its kinda like tax, which is how the government also makes their billions.
For the most part, insurance rates are affected most by statistics. Using the rule of large numbers, any group of people will have a certain amount of accidents in a given period of time. All the things they consider in determining your rates is the same they looked at to determine how much risk there is.
That being said, a well managed insurance company will make about 2 cents on every premium dollar. The rest goes into the everyday operations, expenses and claims costs. Compared to many other businesses, they have a very small profit margin. They work in large scale profits as they really have to. Smaller companies can easily go insolvent from a large catastrophe. Hell, even some larger ones have nearly gone bankrupt due to earthquakes and storms. Most insurance companies make less than 2 cents for every premium dollar and in fact, many run in the red. The only thing that keeps them afloat is the fact that they invest unused premiums to recoupe some of the money.
I know few married couples who can drop each other off at work and such. Married couples tend to get lower rates when records are decent as they statistically drive safer. Kids might be a factor in that being the reality.
The law makes you pay for liability insurance simply for the fact that too many of as drivers would not insure ourselves otherwise. Considering how many uninsureds there are even with laws in place, it would be a nightmare to drive. It could turn a responsible human being into a criminal (I've handled hundreds of hit & run accident cases and of the relatively few I've been able to locate the hit & run vehicle on, they were usually uninsured). Few people would have the means to be paying for accidents that they cause. And this is especially the case with current uninsureds as their lack of responsibilty shows more in their driving habits as well.
Lastly, the law doesn't exactly force you to have insurance. You always have the choice not to drive.
Sorry for dragging this a bit off topic here, but I don't care to see incorrect assumptions go unquestioned.