Are Insurance Rates Lower For Females?

July 14, 2011 No Comments »


Insurance Q&A: “Are insurance rates lower for females?”

There are a lot of insurance myths floating around out there.

As a result, it can be tough to filter everything we hear about insurance to determine what’s accurate and what’s plain ridiculous. Fear not, TTAI is here to help you out with this one.

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The Lowdown

When it comes down to it, insurance rates tend to be lower for females than males. We’re assuming the ladies are satisfied with this answer and the gentlemen don’t believe it’s so, ahem, “fair.”

With the truth out of the way, let’s explore the “why.” It’s a good idea to read up on how car insurance rates are determined to understand the basics.

But let’s look at this particular one in detail.

New Era of Insurance

Gone are the days where everyone pays the same amount for an insurance policy. Insurers have focused on developing rates that accurately reflect our individual risk as a way to improve their bottom line.

The ultimate goal is to attract the drivers with the lowest chance of filing an insurance claim and offer them the cheapest possible insurance premium.

The opposite is true of drivers who are more likely to file a claim during their policy term.

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Remember, even a small claim can greatly exceed a couple years worth of our premium dollars.

Keeping that principle in mind, consider the information below that explains why men pay more than women when it comes to car insurance rates.

Stats Don’t Lie

If you present a higher statistical chance of filing a claim (thereby costing the insurer money), you pay more for insurance. On the flip side, you pay much less if you aren’t “risky” to insure.

Insurance companies are data hounds. They collect every imaginable detail (that’s not discriminatory) about us and review it constantly.

As you may have guessed, males have a higher numbers of tickets and accidents than females. The gap is widest for the youngest age range, which explains why car insurance for a teenager is so high.

All other factors being equal (requested liability limits, type of car, age, etc.) men can expect to pay more for insurance.

Final Word

Whether you’re a male or a female, if you think you’re paying too much for car insurance, shop for insurance quotes online and/or speak with an independent insurance agent who can shop your profile with several insurance companies at once.

There’s a good chance a better deal awaits you.

(photo: Fidelio)

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