In these days of so-called equality between the sexes, there should be no differential in the price of car insurance for men and women. However, it’s a fact that in most states auto insurance is, generally speaking, less expensive for women. This is not to say that all car insurance is cheaper for all women; many factors are involved in the computation of rates, and gender is just one of them. Although different companies set their rates according to various circumstances, most use the following guidelines:
Marital status
All things being equal, most insurance companies will offer the lowest rates to woman drivers who are married. Apparently, married women are assumed to be more stable and responsible than those who are single, divorced or widowed. To be fair, the same criteria apply to male drivers; marriage is the preferred state in the eyes of insurance companies when it comes to setting rates.
Driving record
This is the most dramatic difference in the cost of insurance between men and women. Since statistics reveal that more accidents are caused by male drivers, it is reasonable to expect lower rates for females. Women traditionally drive more slowly and defensively, are more careful and own safer cars. However, this trend is beginning to change as women are getting more lead-footed, driving sportier cars and becoming more inclined to engage in road-rage encounters. The number of female DUIs is also increasing, as are more incidents of aggressive behavior, which are further causes of rate hikes. So, regardless of future changes, a clean driving record is still the best insurance for getting the best insurance.
Age
Most people believe that twenty-five is the magic age for lowering insurance premiums. This is not necessarily so. The fact is, reductions or discounts are not automatically applied at any specific age, but rather on the number of years a driver has been licensed and free of claims. It is true that a good driver who has been on the road for at least five years will receive a lower rate when turning 25, but if she’s only been driving for a year or so, her rate will be no lower than that of a 22-year-old who has been licensed since the age of 17. Of course, once a driver hits 75, rates take a dramatic jump, even if she has decades of faultless driving. (Old age takes its toll in many ways).
Credit rating
One of the more capricious factors in determining car insurance premiums is a person’s credit rating. It would seem that as long as she pays her premiums on time, a woman’s credit history should be immaterial, but it isn’t. Insurance companies assume that those who are careless about paying bills are also careless behind the wheel, despite the absence of statistics to prove this assumption. Nevertheless, a woman with a low credit score will pay more for her car insurance than one with a good rating. There may still be a few companies that do not take this factor into consideration, so it’s always a good thing to shop around before settling on an insurance company.
Location
It’s logical that women who live in high-traffic, high-accident cities will pay more for their auto insurance than those who reside in rural areas where there are fewer vehicles to run into each other. What is not so obvious are some of the other factors considered by insurance companies when computing rates. For example, local weather conditions play a large part in the cost of premiums. If you live on a flood plain, or experience frequent blizzards, hail, tornadoes or earthquakes, you can expect to pay more for your insurance. The efficiency of your local safety services also play a part in your rates; if your police or fire departments are known to be slow to respond, it will be reflected in your payments. Poorly constructed and maintained roads in your zip code will also impact premiums, as will living in a high-crime neighborhood. Insurance companies take a dim view of car theft and break-ins and consumers are charged accordingly. And speaking of the law, one of the lesser known parts of the insurance premium algorithm is the number of attorneys in your city. If you live somewhere where every other TV commercial is for a personal injury lawyer, it’s a good bet you’ll be paying more for your auto insurance than someone who lives in a less litigious location.
Car make and model
Needless to say, regardless of where or how well a woman drives, her choice of car will impact the price of her insurance. Such safety features as anti-lock brakes, automatic seatbelts, airbags and similar appurtenances will affect her costs, as will the age and condition of her vehicle and the frequency with which similar cars are stolen.
In short, a woman of the right age with a good credit rating who drives a safe car in a safe manner in a safe neighborhood will generally pay less for insurance than a man in comparable circumstances. And, of course, it’s always well to remember that there is enough competition among insurance companies to allow a smart shopper to make the best deal when looking for coverage.
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