Hundreds of factors come into play when an insurance company determines what you pay for a premium. The type of vehicle you own, the year of the vehicle and annual mileage help shape the premium paid. Along with these factors, gender and age are also taken into consideration. That’s right, men and women do not pay the same amount of money for their insurance premiums. Why? Read on.
There’s a Noticeable Price Difference
From the moment that a woman begins driving, she will pay less for insurance than a man would. Driving style isn’t the only reason that women get a discount over men, but it is definitely part of the equation. Here’s a quick breakdown of the differences between men and women drivers.
- Men employ riskier driving behavior
- Men and women get into accidents at different frequencies
- Men and women drive different numbers of miles
- Men choose different vehicle types than women
Why Women Get a Discount
According to statistics women aren’t as likely to:
- Drive while under the influence of drugs or alcohol
- Commit moving violations
- Get into an accident
- Buy vehicles that are costly to insure
After reading the above information you probably feel like insurance pricing is biased towards women. The thing is that there are statistics to back up the price differences. Here are examples of these statistics taken from a report issued by the Insurance Institute for Highway Safety.
- 88% of women wear seatbelts while only 84% of men do
- Men are more likely to drive under the influence of drugs and/or alcohol
- Male drivers die in fatal car accidents 50% more often than women do
- 23% of men crash because of speeding while only 14% of women do
- In 2012 about 71% of car accident deaths were caused by males
Insurance companies do their best to minimize risk as much as possible.
Age Helps Even the Gap
The disparities between payments for men and women is greatest in the 16 to 24 age group, because men are statistically much riskier drivers at these ages. As men and women age, the differences in insurance premiums equal out a bit, though women still tend to pay less money in premiums. If you are under the age of 25, man or woman, you should experience a hefty discount perhaps making 25 your happiest birthday ever.
Saving as Much as Possible
Both men and women can save money on insurance premiums by being proactive about making use of any discounts available. Driving carefully and avoiding moving violations is an excellent way to achieve lower premiums. Taking a defensive driving course, and shopping around for cheaper insurance rates can help both men and women as well.
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