
Cheapest car insurance in Arizona
An ASU finance expert breaks down concepts of statistical and taste-based discrimination in car insurance.
In this story published Feb. 5, 2025, on WalletHub:
Statistical discrimination in auto insurance refers to using data-driven factors that correlate with risk to set different premiums for different groups. For example, insurers might charge higher premiums to teenage drivers because statistical evidence shows that they have higher accident rates as a group. This discrimination is based on actuarial data and risk assessment, not prejudice.
– Sreedhar Bharath, professor of finance
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