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The impact of age and gender on auto insurance premiums


Having a valid auto insurance policy when you are at the wheel of the car is imperative if you don’t want to brush up the wrong side of law. Not having a valid and legal policy can either result in a hefty fine or time in prison, both of which can prove to be detrimental. There are a number of factors that the insurance companies take into consideration before calculating the auto insurance premiums for the policy holders. While the role of the driving record, make of the car and the safety gadgets affixed to it cannot be overlooked, it is the gender and the age that play the most important role while the premiums are being calculated.

The cost of insuring teenagers and those below the age of 25 is expensive as compared to the cost of insuring people over the age of 25. Statistics have revealed that a majority of the accidents are caused by teenagers who drive recklessly without giving a thought to either their lives or the lives of the others on the road. This clearly increases the risk for the insurance providers who make up for this risk by increasing the cost of the auto insurance premium. Another fact that works against the youngsters is the fact that they do not have a driving history to support their credentials. Auto insurance providers take this into consideration while calculating the premiums since they reveal how careful the driver is at the wheel. Not having this history is again akin to taking a risk which in turn translates as higher premiums.

Gender is another factor that plays a crucial role in determining the amount of money a person has to pay to obtain the auto insurance policy. The premiums that men have to pay to get their car insured is significantly higher than what women have to pay to stay protected. This can be attributed to the sudden adrenaline rush in men that makes them throw caution to the wind and drive recklessly at times. Women, in most cases, have proven to be safe drivers since they give priority to their lives as well as those of their families and the others on the road over all else. Hence, the chances of them getting into accidents are lesser which in turn translates into lower auto insurance costs. The fact that, men drive more than women, cannot be ignored. This in turn increases the risk for the providers who charge more for the auto insurance policy for men.