How Gender Affects Car Insurance Rates

Most drivers try to spin their driving history or risk profile to get better rates. Sometimes they avoid filing claims to maintain their cheap coverage, or they underestimate the number of miles they drive annually. Some risk factors are easy to manipulate or misrepresent, like your driving behavior; however, others can’t be changed to get a lower car insurance quote. Two of these factors are gender and age.

Car insurance companies base all of their policy rates on complex calculations involving statistical probability, and numbers have shown that gender and age play an important role in determining your risk. All insurance companies regularly charge more for males versus females. Similarly, senior citizens and mature drivers have cheaper car insurance than teenagers and young drivers under the age of 25. Nonetheless, it is still possible to find affordable car insurance if you do your research and comparison shop to get discounts.

Why Carriers Adjust Premiums Based On Gender

Insurance companies use complex actuarial tables to analyze the statistical risk associated with every policyholder based on their driving history, gender, age, location, vehicle type, make and model, and credit history, among other factors. These tables hold an enormous amount of information, and help an insurer determine the chances that a certain driver will make a claim in the future.

It has been shown that male drivers tend to make, or be the reason for, more claims than women drivers, especially as younger drivers. Male drivers between the ages of 16 and 21 are considered to be one of the more dangerous groups for auto insurance companies. Naturally, companies raise rates for male drivers, and lower rates for women drivers, which is why most families, if they have two adolescents driving and sharing a car, make the female teenager the primary driver on the vehicle.

How Age Affects Rates

In addition, gender’s effect on car insurance rates is also linked to the age of the driver. The discrepancy in risk and premium rates between male and female drivers fade as male drivers get older. Interestingly, past the age of 65, the trend actually reverses, and female drivers pay more for car insurance in old age than their male counterparts.

Again, this is due to a difference in accident statistics between men and women. Though there are various theories on why young male drivers and older female drivers tend to be more dangerous, regardless of the reason, a car insurance quote is affected for those age and gender groups.

3 Types of Drivers That Get Discounts

Everyone wants to pay less for insurance, and some people do. Insurance providers provide discounts to certain types of drivers, such as ones with good credit scores, clean driving records, and those who drive safe cars.

  • Drivers with good credit scores are perceived to be responsible individuals – if you can manage your finances, then chances are, you are reliable and mature. Car insurance companies contend that statistics show a driver with a high credit score is less likely to file a claim and is, therefore, a lower risk and deserves to pay less for auto insurance.
  • Good drivers with clean driving records obviously get cheap rates. Car insurance companies show preference to those who have demonstrated that they are safe, reliable drivers. If a driver has not had a ticket or accident, then the insurer assumes that he is not speeding, driving recklessly, or breaking the law, and is less likely to be involved in an accident and be at-fault. That makes the policyholder a profitable policy to underwrite, and he is the kind of customer that the insurance company wants to attract by giving him the best rate available. If a young driver is inexperienced, has tickets or accidents on his record, then he may be considered a high risk.
  • Comprehensive car insurance completely covers property damage to your car. If you drive an older or inexpensive car, then the insurer is liable for a smaller dollar amount, and you will pay less for car insurance. More expensive cars that require costly repairs result in higher premiums.
  • Driving a car that is not a sports car and does not have a powerful engine, like an old, cheap, conservative car will get a driver more affordable coverage. Another factor to consider is how popular your car is with thieves, and how often that vehicle is stolen.

Consider these factors before buying a new car or purchasing car insurance, and check out online quotes to specifically learn how your credit score, driving record, and personal risk profile are affecting your car insurance quotes.