Many considerations are taken into account when underwriters calculate premiums. They all try to figure out level of risks they are exposed to. If you are statistically deemed to be more likely to cause accidents you will have to pay more money to compensate for it. Quite often people ask; is car insurance higher for males or females. This post will look into gender’s effect on rates and try to answer that particular question.
Final cost is the outcome of a detailed work. It is important to know that each factor carries different weight with each company. While gender is one of the key focus with one insurer the other may be more concerned with recent records or credit score. Therefore, you should always get a few quotes and you can do that here.
Gender is one of the factors taken into account by most companies when they set their rates because it has statistical significance. Some people may see ladies getting coverage cheaper as favoritism but carriers aren’t known for their sentimentality. If they offer a female motorist a lower rate in comparison to her male relatives or friends it is because she is considered a preferred driver.
Why Do Women Pay Less for Auto Insurance?
Usually drivers are grouped for rating purposes using their age, gender, history and so on. And carriers consider the significance of this grouping. According to III, as a group, women get into fewer accidents and they are less serious when they do. Furthermore, guys about 10% more likely not to wear seat belts that increases seriousness of their accident.
Ladies are less likely to drive when drunk and get DUIs and speeding tickets too. According to 2013 FBI report about 540,000 men were arrested for DUIs in comparison to about 170,000 women. Also, speed was the main factor in about 24% of the accidents caused by them while it was 15% in case of women, according to the National Highway Traffic Safety Administration.
In addition, gals tend to travel fewer miles than guys, on average. In other words, they carry lower risk in comparison and this answers why do guys have to spend more for auto insurance? The odds are against them and therefore they are likely to pay for it.
And finally, men are more likely to go for a higher risk automobile that increases their premium. When one is driving a coupe and the other is a minivan it is not hard to see why would the former pay more than the latter.
When you add up all the factors that can affect the average premium charged to a female driver you can see that they typically spend about 8% less for vehicle insurance than men. Off course the real difference will depend on personal circumstances like zip code, experience, claims, age, who lives with you and which company is quoting.
There are even books about the subject suggesting that biologically ladies are more attentive and careful and guys are more risk takers. Furthermore, mums are more likely to drop and pick up the children from school compared to dads that may explain why mums would be more careful. So, it is safe to say that there are real reasons as to why ladies get cheaper quotes in general.