Men are Riskier Drivers, but Women Pay More for Car Insurance?
There have been many studies with insurance, to figure out what exactly comes into your insurance premium. So regardless the case, we want to take a look as to why when all things are equal Women pay more for insurance than men do.
Historically, men have proven themselves as much riskier drivers than women. Statistics show in the year of 2019 which the study was conducted by The zebra, women in the United States pay more for car insurance then men do. Women currently pay more for current trends in 25 states whereas men are paying more for car insurance and just 19. So really does beg the question doesn’t it? Well statistics also shoulder in the year 2016 things weren’t the way they are right now. Man actually were paying for more for auto insurance and 33 different states where as females are paying more in just 12 states. Although it may be unclear as to why the numbers have almost doubled in just three years, there are some assumptions as to why this is. The going theory currently in the auto insurance industry is that the reason as to why women pay more for auto insurance is due to the fact that they submit more claims than men.
The theory in itself does make sense, if insurance companies are receiving an influx of insurance claims that majority of them are women, it’s natural for the insurance company to make sure that they cover their liability. Which in turn is why women auto insurance rates are much higher than men. Although the only thing that is very questionable, is a fact that there is significant proof that men are riskier drivers and women, so doesn’t that mean they should have higher insurance premiums?
Here are the statistics collected by the Insurance Institute for Highway Safety:
- 2017 71% of crashes were caused by men
- Men drive more than women. This ultimately increases their chances of getting into an accident. (more time on the road, more of a chance to get into a fender bender)
- Men indulge in risky behavior. (Under the influence, speeding, etc.)
- Statistically, crashes that involve men are more severe than they are women
We all know that the prices for auto insurance has varied from time to time. It’s a little discomforting to know how quickly they can change and how it can actually put a financial strain on you. But there are many factors that come into play when dealing with your auto insurance price such as your age, type of car you drive and even your location.
So when you pull all the women together to determine which Age group is affected most by the fluctuating prices of auto insurance premiums it’s proven to be older women. The Consumer Federation of America did a study and found out that women between the ages of 40 years old to 60 years of age, pay more for auto insurance than their male counterparts. That to even with a Flawless driving record, can you imagine?
Regulations in the Auto Insurance Industry
The United States auto insurance is a must for everyone. There’s no way around it and you have to get it. The only leverage they give you is you can opt for the state minimum insurance that’s required, usually, it’s not the best course of action but they are people who choose it. And because auto insurance is mandatory in the United States, it puts the insurance companies in the driver’s seat since they’re able to manipulate prices at their leisure.
But thankfully that isn’t the case, to avoid situations where insurance companies can manipulate the prices as they please they’re regulated by an insurance Bureau on a state-by-state basis. Their job is to make sure that insurance companies provide you with Fair Insurance practices.
The Uproar of Gender for Insurance Premiums
A lot of people believe that using gender to determine your insurance premium isn’t the right way to do so. Many states have joined together to ban the use of gendered to provide one with an insurance premium. Although auto insurance companies use many factors to determine the individual’s risk on the road, most of their factors are backed by statistics. But the use of gender is being heavily looked at and soon enough we’ll be irrelevant when it comes to insurance premiums.
What to Expect
As the insurance industry continues to evolve, consumers hope their insurance companies will use more relevant data when it comes to determining insurance premiums. Things are just driving history, vehicle ratings, type of vehicle you drive, Should be some of the heavyweight factors when it comes to determining the premium. Although the sound great, their only sufficient with the amount of data that’s behind them. Similarly in the case like this, genders May still be around to influence the prices of insurance. And it’s solely based on the fact how long auto insurance companies determine gender is a strong enough factor to influence insurance.