Do Women Pay Less For Insurance ?

Women pay less in annual premiums on their car insurance compared to men. Between the ages of 30-35, men’s premiums are actually cheaper than those of women. However, this value is marginal and reverses past the age of 35. Teen drivers pay by far the highest premiums of any demographic, regardless of gender. Age as a factor in determining premium prices diminishes as you get older, as a driver gets older. The average female driver pays 13% less for car insurance than her male counterpart .

Why Do Women Pay Less For Car Insurance?

Women typically drive smaller vehicles, which makes paying for car insurance easier. Additionally, women have been driving more since the 1990s and therefore pay less because they’re less likely to be at risk. On average, men’s number one cause of motor vehicle accidents is speeding , accounting for 30% of all accidents. Women, on the other hand, are the number one cause of collisions. Their leading cause of accidents is failure to yield. Men have a much higher likelihood of causing accidents, but women typically handle these more minor accidents in such a way as to not get themselves into more serious incidents. Women are also much less likely to be involved in accidents due to drunk driving. Age also affects insurance costs.

What Factors Influence The Price Of Car Insurance?

Cost of the car Factors that determine the overall cost of a car can be split into the following: Length of ownership How much you drive Fuel economy In most states, a car’s value is its “residual value.” Used cars retain a portion of their former value after repairs. Most car insurance companies use this value in determining the “base premium.” Most people don’t realize that most car insurance companies deduct 100% of this value, and use this value as the basis for calculating a car insurance quote. If you drive a brand new car that’s only been driven a few hundred thousand miles, you may pay much more for car insurance than you will for a used car. Even the value of your car after repairs is not a good indicator of your car’s future resale value.

Who Pays The Highest Premiums?

Millennials — men and women — are the largest payers in auto insurance premiums. Overall, men are slightly cheaper than women for insurance premiums, but millennial men are actually more expensive than millennial women. Younger drivers pay the highest premiums. Those under the age of 30 spend an average of $1,489 per year on car insurance premiums. Insurers look for various things when determining premiums. You will see increases in premiums in the following places: if you have a speeding ticket, if you have claims that have gone through without paying the necessary amount of money, if your credit score is below 750 or if you have less than $50,000 in annual income. Lower incomes will cost you more, but you will also pay less for insurance. These are just a few examples.

Default image
Matt Barnes
Matt Barnes is a former insurance agent in Texas. He currently works at b5media as director of business development. He lives in San Diego, California with his wife and two daughters.
Articles: 31