Who gets the cheapest auto insurance rates?

Men Vs Women: Who gets the cheapest auto insurance policy and why?

As it is popularly known, car insurance is a must for car owners. This is applicable for most states in the US. An insurance company provides you with a car insurance policy depending on a number of factors like age, address, type of car, car model, car use, type of coverage, credit score, credit history, driving history, etc. One major aspect that car insurance policies depend on is gender i.e. upon you (the applicant) being a man or a woman. This carries the most weightage when an insurer is determining your insurance rate.

Cost chasm

Beginning from when individuals start driving, women drivers often pay lesser car insurance than men. This is because of the following factors.
Men choose very different type of cars as compared to women. For example, a man may purchase a sports car or a bigger and fast car, whereas a woman may prefer buying a car that’s swift yet convenient, comfortable and not rash.
Statistics show that men are more prone to accidents than women.
Risky driving behaviour analysis based on genders.
Average miles driven by men and women.

Reasons why women get a cheaper car insurance policy

For the purpose of determining your premium, car insurance companies assess the risk involved in giving you an insurance. This refers to companies using historical records to determine the possibility of you (the insured) being involved in an accident. Statistics prove that women are less likely to:

  1. Be involved in a car accident
  2. Break laws like speeding, drunk driving, etc.
  3. Purchase cars that are expensive to insure.
  4. Drive many miles as compared to a man.

Supporting statistics by the Insurance Institute for Highway Safety (IIHS)-

In 2012, 14% of women were involved in dangerous accidents were found to be speeding at the time of the accident. Whereas, 23% of men involved in the fatal crashes were speeding at the time of the accident.
88% of female seat occupants complied with the use of the seat belt, while a drop of 84% was seen for the same in male seat occupants.
In 2012, 20% female drivers were under the influence of alcohol during fatal accidents and 38% of male drivers were involved in the same with a BAC’s of above 0.08 as compared to female drivers. This summarizes that men are more susceptible to be under the influence of alcohol during dangerous car crashes.
In 2008, the number of male drivers that died in a fatal car accident was 50% higher than that of female drivers.
In 2012, males constituted to 71% of all accident car deaths.

Risks are subjective as it constitutes a large aspect of insurance premiums, hence women usually pay lesser for car insurance premiums as compared to men.

Impact of age on car insurance premiums

As mentioned earlier, age is a significant factor that companies use to determine car insurance premiums. For women, car insurance premium is at its highest when they are young. However, this is still lesser than the premiums for men of the same age group. Even though car insurance companies analyse that young women are more prone to perilous driving, they still are of the view that young men are yet more likely to get involved in accidents, violate driving and other car related laws and cause catastrophic accidents. This difference in young men and women drivers is so widely significant that it constitutes for a major part of the lifetime difference in the cost of insurances.

Conclusion

In conclusion, it has been statistically proven that men practice unsafe and perilous driving as compared to women. Driving history plays a very important role in car insurance premiums. Hence, if you’re a male who has a good driving history, you will be charged lower premiums as compared to a female with a bad or poor driving history. In case you have a bad credit score, poor driving record and high record of claims, then irrespective of you being a woman, you will pay a higher car insurance premium.

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