Studies Say Men Pay More for Car Insurance

by Michele Postler, Thursday, January 17, 2013

Recently a CBC News post indicated that men on average will pay almost $15,000 more over their life time for car insurance than women. The insurance companies’ use archaic reasoning to price auto insurance policies and the assumption at the forefront is that men tend to drive more than women. This assumption dates back quite a few years to when women mostly didn’t have a driver’s license or stayed at home while the men drove to work everyday.

We are now in the 21st century and women drive just as much or more than men. They are constantly packing more into their day and rushing around to get things done which is almost always done in a car.

Another less archaic reason for the increased premium is that men are more reckless when driving and tend to take more risks. According to a study done by the John Hopkins School of Public Health, crashes involving male drivers resulted in a more fatal outcome where as female drivers were often involved in fender benders.


Young Drivers are also paying high car insurance premiums based on Age

Car insurance for young drivers between the ages of 16 and 25 are also on the higher end of the premium cost scale. Their driving record is relatively new so the companies base their premiums on their age. The results are that high premiums are charged to younger drivers. Which is unfortunate as most young drivers don’t have the means to pay this inflated cost. On the other hand young drivers often account for more fatal car crashes and they are more likely to drive under the influence of alcohol as indicated by the National Highway Traffic Safety Administration.

There are many people that believe that age and gender should not have any bearing on how insurance premiums are priced and that this practice is unethical. They could be right but until it is deemed as illegal these practices will still be used by insurance companies


Tips to reduce your car insurance that don’t rely on age

Here are some ways to reduce your insurance rates that doesn’t have anything to do with age or gender.

New technology has come out that enables a driver to be watched or tracked. In some states there are devices that can be placed in your car that tracks how fast you are driving and how many miles you drive each month. This will reduce your premium rates and prove to the insurance company that you are a safe driver.

What you drive really plays a role in how much you pay for insurance. If you are a young driver and you are driving an expensive, fast or muscle car you will pay a lot more than if you were driving a lower cost sedan.

Location also affects your insurance rates. If you live in a big city with a higher crime rate you will pay more for your insurance as the companies find it is more risky than living in a small rural town.

Take advantage of discounts that are offered but not always well advertised like the professional discount and the good student discount.