According to a report by CBS News, men pay about $15,000 more for car insurance over a lifetime when compared to women. It may seem discriminatory, but many Vehicle Insurance Companies use non-driving risk factors to determine rates. When a person buys auto insurance, they agree to a set of regulations and rules. Therefore, it makes sense to understand those rules to get the best price possible.
Women Usually Pay Less for Insurance Than Men
While most studies show that women pay more for health coverage, men balance it out by paying more for auto insurance. The differences are based on risks and statistics. While women are more likely to go to the doctor, men are more likely to be in a car accident. According to recent findings, auto insurance rates are 68% lower for college-educated married women than for single women with only a high school diploma. While no changes are being made in the U.S., some countries have made it illegal to charge different insurance rates for men and women.
Youth Equals Risk
Younger people (those between 16 and 25) have the highest auto insurance rates, and young men pay more than young women. As a driver ages, their rates continue to drop unless their driving record is poor. However, seniors pay more for insurance than middle-aged drivers because they’re more likely to be involved in an accident.
Controllable Factors
Despite the fact that some jurisdictions limit the usage of non-driving factors in determining auto insurance rates, debating these factors is a bit of a slippery slope. While it may seem unfair to charge a person more because they’re more likely to be involved in a car accident, others say it is unfair to have their rates raised to make things equal. Until insurers can determine how to fairly determine rates and assess risk, drivers can alter certain factors to reduce their rates.
* Controlling speed
* Refraining from driving under the influence
* Utilizing discounts
* Examining coverages and make changes
While insurance is a necessary purchase, it’s not imperative to pay a high rate. With some planning and thought, a driver can minimize his or her rates and enjoy the reassurance that comes with proper coverage from Vehicle Insurance Companies like.
