Among a lot of factors that are considered while setting car insurance premiums, gender is a very important factor. Insurance companies set these premium rates based on historical data and statistical data collected over the years. When insurers find a certain group making more claims or being involved in accidents, the insurers consider them as higher liability and charge that group a higher premium. Read further to know how gender affects car insurance premiums
Does Gender Affect Car Insurance Premiums?
Men tend to pay more for car insurance compared to women. Even though the difference is very slight, women do pay less compared to men. The amount of premium to be paid also differs on the age of the driver. Around the world, most drivers below the age of 25 years are most likely to be charged a higher premium since they are still new drivers. After the age of 25 years, insurance premiums vary based on gender
Age and gender go hand-in-hand while deciding the insurance premium. For instance, it is seen that female drivers below the age of 50 years are charged less than male drivers their age and female drivers above the age of 50 are charged more than male drivers their age. The reason why men must pay a higher premium for most of their adult years is that statistics show that they are more likely to be involved in an accident and make more claims
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Factors That Cause High Premiums for Young Drivers
Teens and especially male drivers who just begin to drive are charged a high premium until they turn 25 years. Let us look at some factors that cause high premiums for male teenage drivers:
Inexperienced – Teen drivers are more likely to meet with accidents due to inexperience. They may not be able to foresee dangerous situations and handle traffic like an experienced driver
Not Using Seat Belt – It is mandatory for all drivers and passengers to wear their seatbelts while driving. Many serious accidents are caused due to not wearing seatbelts and since a majority of youngsters do not wear seatbelts, they are considered at
high risk for insurance companies
Over-speeding – Young drivers often get involved in races with peers that can cause serious damages to the car and the driver. Insurance companies have noticed that between the ages 15 to 18, a lot of fatal car crashes occur due to over-speeding
Distracted Driving – Teens tend to have a lot on their minds and often do not concentrate while driving. Many teens meet with accidents while texting at the time of driving
Alcohol Consumption – Young drivers often drink and drive knowing it is life-threatening. Insurance companies know that young drivers can get involved in such situations and charge high premiums since they are liable to pay for losses
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Senior citizens regardless of their age will be charged more since their reflexes slow down and are likely to meet with accidents. One can avail the best premium price for their car insurance between ages 25 to 60 years. There are many other factors that affect the car insurance premium and one can find ways to decrease this by various means.