Originally Posted by debbie
Red (and yellow) catches cops' eyes better than bland, so they get pulled over more, ticketed more, and seen more. But it didn't affect what you paid for our insurance. Your claims and damage did.
Now age is another indicator with similar evidence behind it (drivers under age 25 have more accidents than over that age), and that *is* used to determine price. Mostly here because age is always used by all insurers and the bonus/malus tables (years used to determine a point system based on damage-free driving years) are based on the life insurance tables. We suspected colour may have been used to add an extra to the premium by some of our competitors, but for us it mattered too little to be worth a rise in premiums, which of course we're all fighting to get customers based on that.
Plus, while my own driving doesn't go from normal to bad just because I switch from a bland car to a red one, but a 23-year-old will drive like a 23-year-old regardless of car they get into. So since we're using the *driver's* stats to set rates, that still seems closer to fair as well (we didn't do stuff like discount for alarms, seat-belt use or good grades, which I know is more and more common in the US... I like those too).
People filled out our forms in order to
1) get a quote (and colour of the vehicle never affected the price)
2) buy the insurance
If we are asking users for the minimal necessary information to tell them how much the type of insurance they want will cost, we ask them only those questions. Since colour never affects the price, the boss removed it. It still ended up being a long form, but every little bit helped.
Certain brands of scooters also got stolen more (and theft was the biggest claim for scooters, more than accidents), but while we had an optional field for scooter info (optional because we had no extra databases of stuff for per-brand for scooters but did for cars), we didn't change the price based on whether you drove Aprilia or Piaggio or Honda. Instead, we leveled out that risk by having as many scooters insured as we could get. Volume ended up being more worthwhile than charging more for the more popular scooters.