How Insurance Rates Change Depending On Age And Gender
There are several factors that can determine your auto insurance rates. Some factors you can control, like driving without any accidents or tickets, but others, like gender and age, are uncontrollable and based on statistics gathered by the insurance company. Depending on which chromosome you were given as a child, you could be paying significantly more for car insurance. Your age only adds to this problem. Lets take a closer look at how these two factors can affect your bank account.
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Despite all the bad women driver jokes, the truth is women get in fewer accidents than men.
According to the National Highway Traffic Safety Administration, in 2010, men were in about 1.3 million more crashes than women. Whats worse is that there are 1.3 million more licensed women than men. Men tend to drive more aggressively and the data show they get in more accidents than women. Insurance companies know this and reflect it by an increase in rates. The average male driver stands a 1-in-19 chance of being involved in an accident while the average woman driver has a 1-in-25 chance.
According to an online study, if a man and woman have the exact same driver profile, the insurance quote for the man is higher 62 percent of the time. It is also higher by an average of 23 percent. According another study, men will pay on average $15,000 more on auto insurance over a lifetime.
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When all driving factors are the same, older drivers pay a lower premium for auto insurance than younger drivers.
Drivers under the age of 25 have a higher premium than any other group because the majority of accidents are caused by teenagers. Why? Lack of experience, risky behavior, alcohol use, and not wearing seat belts are just a few of the reasons. Sixteen-year-old drivers have the highest fatality rate in the country.
The next highest age group with the greatest risk is, not surprisingly, those over 75. The safest driving age is 40 to 50.
Over the course of a drivers lifetime, the price of the insurance premium will changes as follows: rates will be highest as a new driver; rates will start dropping at age 25; it will slowly decrease until reaching the lowest point around age 50; around 65 it will start increasing again.
Premiums are based on risk and insurance companies have been collecting data on drivers for a long time to decide how much to charge for a policy. Since you cant really control your age or gender, the best thing you can do to bring down premiums is drive with a clean record