Each driver will find that auto insurance rates vary according to a number of factors including age, gender, driving history and vehicle type. Women drivers usually enjoy slightly lower rates for liability insurance, comprehensive and collision protection, and uninsured motorist coverage.
This is because statistics show that women are less likely to cause an accident, and the severity of accidents caused by women is also lower on average. Because insurance rates are largely about risk, women can be rewarded with lower prices.
However, women will not always receive more favorable insurance quotes than their male counterparts. The rates will depend on certain criteria gathered by the insurance provider. A low credit score, a history of bad driving, and lapses in insurance coverage can drive rates upward for any individual.
Studies Related To Gender
The Insurance Institute for Highway Safety (IIHS) gathers data annually and prepares reports that detail the accident probability for certain makes and models of cars, certain drivers, and certain areas of the country.
The findings of recent reports clearly shows that females are more careful behind the wheel, follow the rules of the road better than men, and tend to purchase vehicles that are considered safer. The IIHS reports include data on the wearing of seatbelts, driving under the influence, and obeying speed limits.
In each of the three categories of IIHS statistics mentioned above, women tend to be more responsible behind the wheel than do men. This is true with any age group, even teenage girls. However, teen drivers are on average more likely to become involved in accidents that are not their fault, and this is true for girls as well as boys.
What Insurance Actuaries Do
Insurance actuaries use data gathered to project the likelihood of an accident resulting in vehicle damage and/or personal injury. The findings determine the actual rates for insurance. Insurance companies are in the business to make a profit, and they do not wish to lose money by offering favorable premiums to every driver.
Even though women make up approximately half of all drivers currently on the road, statistics gathered show that nearly 70 percent of all vehicle-related deaths are males. About two-thirds of all pedestrian deaths are caused by male drivers. Nearly 50 percent more males drive above the speed limit with regularity.
Actuaries use this information to set rates for their partners, the insurance companies. Insurance providers want their customers to remain with them for many years, and women who keep the same policy in force for an extended time are generally rewarded with lower rates.
Women Drive Safer Vehicles
Women tend to purchase autos that have scored high on the IIHS crash tests. They also are more likely to purchase a vehicle that has numerous safety features installed. Women tend to review automobiles in greater detail than do men, most likely because they are concerned with vehicle safety, resale value and lower maintenance costs.
For example, minivans, with their safety features and low rates of theft, can have some of the lowest insurance prices on the road. Women are more likely to be behind the wheel of a minivan. They are also more likely to drive cautiously.
Women who have a safe driving record, a moderate to high credit score, are above the age of 25, and
who insure a vehicle with advanced safety devices are usually rewarded with the low insurance rates.