How age and gender can impact your auto insurance rates


Age and gender are two huge factors when it comes to what rate you will be given for your auto insurance premiums. It is important to understand how these may affect you to avoid getting petrified when you get your insurance quote. Here is some information to help prepare you for your auto insurance policy quote.

First, let us understand that there are many factors involved when auto insurance companies are calculating your auto insurance premium rate. The type of car you drive, the place you live, your accident history, your driving experience, your credit report, your visual health, your age, your sex, your economic background, your credit history, etc.

So, knowing all this, how does gender affect your auto insurance rates?

It may be sexual discrimination, but males have a lot more cost when it comes to buying auto insurance because they are statistically more probable of getting into an auto accident or collision.

Why? Well, some auto insurance companies believe that men are more susceptible to risky behavior then their female counter-parts. So, males well generally have a higher auto insurance rate then women. So, if you take two people with the exact same data, but one is a male and the other a female, the male will usually have much higher premiums.

So, how does age affect your auto insurance policy? Well, younger drivers are statistically more probable of meeting with an accident or collision as well. This could be because they are inexperienced due to their fewer years of driving. This could also be because, being young, they are more prone to risky behavior then someone whose hormones have calmed. Also, younger people are more prone to bad influences from their friends. It can be very difficult to drive with four 17 year olds screaming in your ear to turn the music louder.

So, in essence, younger people are more prone to distractions, coupled with their fewer years on the road, this could lead to the reason they are more statistically prone to get into accidents or collisions. Because of this they are charged a lot more than people in the late 20’s for example.

On the flip side, older people, that is to say people older than 65, are also charged higher auto insurance rates. Older people have declining eyesight and declining health in general, so they are also more statistically prone to getting into accidents or collisions, so they, as well as the younger people (people under 25), will have much higher auto insurance rates. While this is age discrimination, it is legal to do, and the auto insurance companies utilize this.

So, why not just charge everyone the same flat rate? Wouldn’t that be fairer? Well, not really. People with higher risk factors do indeed cost the auto insurance companies more money in the end than those with less of the statistically higher risk conditions.

Auto insurance companies want to make a profit just like any other company, so they must charge more to higher risk clients than they charge lower risk clients.

Also, be aware that you can still have a high auto insurance rate because of other risk factors. If you ever get into an accident, you can be rest assured that your auto insurance premium will rocket sky high!