In most states, auto insurance companies can take gender into account when setting auto insurance rates. Over a lifetime, women tend to pay a little less – but only a very little. While young men and women have the largest gender gap, adult drivers can generally expect the price difference between men and women to be less than 1 percent.
When you sign up for auto insurance, age and gender can affect this ratio.
Women tend to pay less for auto insurance than men. And not surprisingly, younger drivers pay the most. Age is related to driving experience and risk of accidents.
Gender differences in auto Car Insurance rates.
Studies have shown that female drivers pay less for auto insurance than men. As drivers get older and more experienced at driving, the gender disparity in proportions becomes insignificant. Although the average premium rate is the same before and after age 35, women pay slightly more than men of different ages. Female drivers start paying lower premiums as they age. One supposed reason male drivers pay more for auto insurance than women is that male drivers are harder to insure. Men often drive more miles than female drivers, and tend to engage in unsafe driving practices such as speeding, drunk driving, and wearing seat belts more often. Many studies actually show that women are safer drivers than men in many ways. Although the gender gap in auto insurance rates has narrowed somewhat over the past few years, it still exists.
How will age affect auto insurance premiums?
Age is an important factor when insurers determine the premium for one of their drivers. According to the Huff Post, regardless of their gender, young drivers will pay more for auto insurance than any other demographic. The reason for the high rate among young drivers is that they, as a population, are more likely to be at high risk by speeding, forgetting to wear seat belts and breaking other driving laws. Because of this trend, young drivers tend to charge higher insurance premiums and pay more to insurance companies for medical expenses and property damage.
Although women pay on average less than 1 percent more than men, the situation is reversed compared to younger drivers. According to Zebra, young men will pay about 14 percent more in premiums than women. This is due to the risk that male drivers under the age of 20 are exposed to behind the wheel. Insurance companies are raising interest rates to compensate for this.
However, when drivers turn 25, their auto insurance premiums are usually lower, and men and women with the same driving record can expect to pay about the same amount. However, according to the insurance journal, women pay slightly less than 1 percent more than men. After rates are reduced at age 25, drivers can generally expect to keep about the same premium rate until they reach age 60, when another significant reduction will occur.
Age affects the difference in Car Insurance rates between the sexes.
While adult men and women pay about the same amount for auto insurance, the difference changes as drivers age.
While all teenagers pay more for auto insurance than older people, teenage boys pay the most. Our model boy driver got an estimate of $4,946 a year, which is $328 more than a girl of the same age.
On the other hand, a 32-year-old male can expect to pay about $15 more a year than a female.
One reason men tend to pay more for auto insurance than women is that men are exposed to more risk in insurance. According to the Institute for Highway Safety and Insurance (IIHS), men tend to drive more miles than women and are more likely to engage in dangerous driving behaviors, such as speeding, drunk driving and wearing seat belts.
According to IIHS analysis of the U.S. Department of Transportation’s fatality analysis reporting system, men were killed in twice as many car accidents as women in nearly every year from 1975 to 2019. In 2019, men accounted for 71% of the total number of people killed in car crashes.
How marriage affects auto insurance rates.
According to the same Insurance study, marital status plays a bigger role in policy rates than drivers think. Even if married drivers are young, their marital status saves about 21 percent compared to single drivers. The difference is much more pronounced compared to married and unmarried women. Young unmarried women can expect to pay 28 percent more than married girlfriends.
The reason marriage affects this is that married people, including driving habits, tend to be more responsible than single people, according to Huffpost. Married people are more likely to go to the doctor, become homeowners and sign up for life insurance. Insurers recognize this lifestyle and reward drivers with lower premiums.
Save on Car Insurance regardless of gender.
Whether you’re male or female, or you’re not a binary option, if you’re struggling to find low auto insurance rates, there are several ways to lower your monthly rate.
First, store around. Auto insurers charge different rates, and factors such as speeding tickets may have less impact on one company’s rates than others. We recommend that you purchase auto insurance at least every two years, or whenever there are life changes that may affect your rates.
Second, maximize the discount you can get. Some insurers offer more discounts than others, but there is no one insurer that offers all discounts. If you get a good job from one insurance company, you can make big savings, or if you become a faculty member at another insurance company, you can get a discount. Make sure you don’t leave money on the table without applying for the discount you are entitled to.
Two big discounts to watch out for are insurance per mile and telematics programs. These similar programs use plug-in devices or smartphone apps to find out how safely you’re driving and adjust your fare accordingly.
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