It’s a fact that belonging to a certain demographic or group will result to pay a much more expensive auto insurance coverage. One of the concrete examples we could think of is the difference in the insurance premiums between men and women drivers. Even if they have similar coverage or driving history, it’s clear that men pay more than women do. We can’t help but notice that some men felt they have been penalized, and have demanded explanations for such discrepancy in costs.
The cost you get from your insurer is not based on pure luck or karma. They use scientific calculations and statistical analysis based on pre-defined factors that compute the likelihood of you involving in an accident. Those who have tipped the scale, the costlier their premiums become. Now you know why young drivers are hammered this way.
Aside from that, auto insurance companies make use of your own statistical records. For instance, how many accidents you have had in the past three years, number of claims filed, citation or violation tickets issued, and so forth. The more you collect these, the pricey the premium gets.
When it comes to expensive rates, expect the teenage drivers grabbing them first. They always pay more than with any other groups, for that matter. By the time they reach the “ripe” age, insurance prices eventually go down.
This is a typical assumption in auto insurance, as the driver aged, the cost of his insurance premiums goes down (in reverse). Again, insurers assume that he has become an experienced driver and knows his responsibilities on the road. To reward his effort to keep the road safe, reasonable prices, discounts or price cuts are offered. These factors aren’t permanent; they change all the time. For example, drivers over the age of 65 are usually considered as high-risk drivers due to their physical limitations, and hence, premium rates are expected to rise. At this stage, women are expected to carry a greater risk than their men counterpart does.
Another reason why men pay more is the fact that when they do involve in accidents, the damages are usually very big and costly. Young male drivers, for instance, are known for their speeding problems and traffic law violations. During the accident, they stand the chance of totaling their cars, beyond repair.
Insurance companies don’t like any accidents to happen at all. Insurance claims could work against their bottom lines. While raising insurance rates are not a hindrance to avoid accidents, but it does send a strong message to anyone that if they get into an accident, expect their rates to surge high.
Men love the expensive and riskier vehicles. Sports cars, for example, are known for their speed and maneuverability. Young men driving a sports car are perfect candidates for high-priced premiums. In other words, the choice of the vehicle will influence your insurance premiums. The discrepancy of the cost could come from this factor, because only few female drivers drive such cars.
Male drivers can always come up with something to make their insurance rates manageable. Instead of using sports cars, why not choose those cars labeled as safe such as the good old sedan models. Installation of safety gadgets or additional features also merits discounts and price relief. On top of that, the use of comparison-shopping websites to acquire multiple insurance quotes from different providers should not be underestimated.
