How does gender and age impact car insurance premiums? First, it’s important to understand that there are many factors in determining what your auto insurance premium rate will be. These include accident history, driving record, visual health, credit history, geographic region, type of car, age, sex, credit history, and more.
All if these factors affect the premium because they affect your risk as a policyholder. For example, a male is statistically more likely to get into an accident or a collision. Many insurance companies note that men are generally more aggressive drivers, whereas women tend to be more cautious drivers and generally more concerned about their passengers. Your independent agent will tell you that insurance companies like cautious people – especially behind the wheel.
Age is also a factor considered by insurance companies writing a policy. Age can greatly affect your risk as a driver. Drivers between the ages of 16 and 25 have a much higher accident rate than other drivers. In fact, the majority of car accidents are caused by teenage drivers. Drivers under 25 are four times more likely than older drivers to die in an accident. Naturally, these risks affect the premium a younger driver pays.
Insurance premiums, as a rule, are based on whether your insurance company believes you will make responsible decisions while driving. Ask yourself – if a car cuts off a teenage driver, will they have the maturity to ignore what happened and continue to drive safely? That is how an insurance company auto underwriter is trained to think.
There are many reasons why young drivers are at risk: poor hazard detection, low risk perception, risk taking, not wearing seat belts, lack of skill, alcohol and drug use, texting, carrying passengers, and night driving. Your independent agent can explain these factors and discuss the best policy for you and your family. He or she will have suggestions to help offset the costs due to age.
The Magic Age
If you can make it to 25 with few or no auto insurance claims or moving violations, you will see your auto insurance premium decrease dramatically. Most insurance companies have chosen the age of 25 as the magic age for a premium drop. This decision is based on statistics derived from historical data.
Ask your independent agent how your age can affect your premium. Also ask what you can do to offset the age-based rate increases and still be fully covered. Many companies consider drivers over 55 to be excellent risks.
There are many other factors that affect your auto insurance premium. Keep your driving record clean and accident free and remember to sit down with your independent agent for advice on how you can be covered without breaking the bank.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
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