By Matt

Vermont State law requires the possession of liability insurance for all licensed motorists and registered vehicles. A motorist can be fined for not having this minimum liability as prescribed by law. Yet, there is no state mandate of insurance rates or regulations.

The fact that the Vermont state government requires the possession of minimum liability insurance in the amounts of $20,000 per person, $40,000 per accident, and $10,000 for property damage is prime evidence that Vermont state government regards liability insurance as a necessity. Other services regarded by the federal government as necessities – electric power, natural gas, and the postal service all have rates which are regulated by either the local, state, or federal government. So, where do the insurance companies get the privilege to charge a price good for them, with no regard for the public interest nor with Vermont state government regulating rates?


The Constitution of the United States guarantees that there shall be no taxation without representation. The Vermont State requirement of liability insurance is a perfect example of taxation. In local towns in Vermont, if one doesn’t pay his property tax, the town auctions his property off. If one doesn’t have the minimum liability required by law, he receives a $500 fine and points on his license. Yet, without proper state control of insurance regulations and rates, there is no adequate representation.

This is not the only unconstitutional aspect of automotive insurance. Insurance companies are allowed to discriminate unfairly according to age, sex, intelligence, and marital status.

The most expensive insurance bracket to fall under is 24 years or younger, male, and single. Persons in this bracket without accidents or traffic violations can have higher insurance rates than people in other brackets with driving violations.

Allstate Insurance company assesses a ten percent increase in policy premiums for each point on the policy holders license, says Brooks Ann Perrault, manager for the Chelsea branch of Richardson Insurance Agency, an independent agent handling Allstate. A thirty percent increase in premiums is assessed for a married, thirty year old woman having one three point accident on her record. A single, sixteen year old boy who has just received his license is automatically assessed one point (a ten percent increase) by Allstate just for being under twenty-five. He is then subject to an additional twenty-five percent increase because he is male and single. Therefore his rate is thirty-five percent above the norm, even with no accidents or traffic violations, while the thirty year old woman with one accident pays a rate only thirty percent above the norm.

It is my understanding that a person is innocent until proven guilty. Allstate, however, finds all young men to be guilty of being bad drivers before they have even gotten behind the wheel.

Insurance companies also unfairly use intelligence as a discriminating actor. Allstate gives reductions on rates for high school age drivers maintaining a B average or higher in school. Tell me what relevance one’s ability to use algebra has on his driving skill. If the assumption is that one who receives higher grades in school must have paid more attention and therefore will obviously pay more attention on the road, then we have the same issue as assuming a male’s driving record before he even drives.

If state law is going to dictate the presence of liability insurance, the state must control insurance rates and regulations. There must be a base rate for premiums at which every new driver starts, male or female, married or single, under twenty-five or over. From this base rate the only things affecting one’s rate should be driving record: accidents, speeding tickets, etc. There should be standardized rate increases for these violations.

I understand that insurance companies are businesses looking to make a profit. I accept that. What I cannot accept is Vermont’s mandatory insurance law forcing me to pay unregulated premiums to insurance companies that capitalize on specific characteristics of a driver, other than his driving record. I leave it to the insurance companies to choose a flat base rate which provides an acceptable profit margin, and rate increases which meet the costs of claims, but let all drivers start from the same place.

I am twenty years old, single, and male. I want the same insurance rights as everyone else.