Nearly everyone is already aware of the fact that your gender influences the rate you pay for car insurance. That’s because auto insurance policies calculate your rate based on the statistical chance you’ll make a claim, and how large it will be. Men make far more claims, and larger ones, than women, likely because of a difference in driving styles.
But when you’re talking about just women, what demographics pay less? Pay more? Do women pay more or less as they get older?
Insurance Rates for Women
- The highest rates are for women under the age of 25. This makes sense; the highest rates for men are in the same category. Younger drivers have less experience. The also make riskier decisions than their older counterparts. They still pay less than men in the same category, however!
- Around age 21, women’s car insurance rates begin to go down, and they continue going down for quite a while. Between 25 and 55, she can expect to see her rates drop by nearly 20 percent. There are two reasons for this—one, the fact that the driver is experienced and mature, and two, that there are likely children in the vehicle, which correlates with safer driving.
- Around 55 years old, the tides begin to turn, with rates climbing incrementally. They won’t ever reach the amount of an under 21 driver, but between 65 and 75, the rates increase more steeply. Older drivers are more likely to get into accidents, and research proves that their reaction time starts to falter. Furthermore, if they are injured in an accident, it’s more likely to be severe or even fatal.
Of course, there are other factors that will affect your insurance premium as well. Age and gender aren’t the only things that the company is looking at when they set your rate. They’ll also be looking at your driving record. There are a few different things that will affect your rates:
- How long you’ve had your driver’s license
- If you’ve had any traffic violations
- The type of vehicle you drive
- Your location
- Credit rating
These are a few of the factors insurance companies will look at, and use to make complex calculations regarding your premium. For example, how long you’ve had your driver’s license might correlate with your age, if you got your license when you were young. However, if you got your license later in adulthood, it might result in slightly higher premiums than other women your age have.
If you have a taste for luxury vehicles, that too will have an effect on your car insurance rates. These cars cost much more to fix if there’s an accident, and insurance companies take that into consideration when they’re calculating your premium.
Location also matters. If you’re driving in Atlanta, Manhattan, or Los Angeles, don’t expect to pay discounted rates. The company is going to look at the statistics for accidents in that region as compared to less densely populated regions, and raise rates accordingly.
So, you see, it’s difficult to predict exactly what your rate will be without getting a quote. An inexperienced, 35 year old driver in Atlanta is going to have a much different rate than a 19 year old in West Texas who’s been driving for four years… and it’s hard to say who’s rate will be higher.
Also, some states, like California, Massachusetts, and Hawaii don’t even allow insurance companies to use the driver’s age as a factor when calculating their rates, In those states, you can expect your insurance premium to remain steady, all other things being equal.