Discriminating against insurance customers on the basis of things they cannot control, like their age or gender, is not good.
Discriminating against customers on the basis of driving habits that they have control over, like how fast they drive, or how hard they swerve, is completely fine.
If driver A drives safely at the speed limit, and driver B constantly pulls stunts at speeds well over the speed limit, B is much more likely to get into an accident than A. Why should A have his premiums raised just to subsidize B's voluntary driving habits?
By making B pay for the costs of his unsafe driving habits, and rewarding A for his safe driving habits, this feels like a great marketplace improvement.
Discriminating against customers on the basis of driving habits that they have control over, like how fast they drive, or how hard they swerve, is completely fine.
If driver A drives safely at the speed limit, and driver B constantly pulls stunts at speeds well over the speed limit, B is much more likely to get into an accident than A. Why should A have his premiums raised just to subsidize B's voluntary driving habits?
By making B pay for the costs of his unsafe driving habits, and rewarding A for his safe driving habits, this feels like a great marketplace improvement.