Is Car Insurance For Women Is Always Cheaper?
Hello friends how are you all? Today we are going to talk about Is Car Insurance For Women Is Always Cheaper? There are lots of myths surrounding car insurance. Red cars cost more to insure — nope. Your rates go up whenever you report an accident — nope.
Women cost less to insure than men— well, that one’s a fair question actually.
Is Car Insurance For Women Is Always Cheaper?
Simply Put — No
According to several studies cited by Insurance Journal, women between the ages of 40 and 60 pay more than men for the same coverage on average. In fact, the results show women over 25, in general, paid more than men for car insurance in 2017 and 2018.
The studies, conducted by the California Department of Insurance and the Consumer Federation of America, found women with perfect driving records were charged more than their male counterparts with similar records nearly twice as often.
Another study conducted by the public interest organization Texas Appleseed during that same time period found married women in that age group paid an average of $56 more annually than married men in the state. Divorced and single women paid an even higher tariff of $80 more annually than men with the same marital status.
So Why The Myth?
The notion that women pay fewer stems largely from the fact that teenage girls cost less to insure than teenage boys. The rate is for males below the age of 20 averages some 14 percent higher than it does for females. This is because insurance companies have noted young males tend to drive faster, take more risks, engage in reckless behaviors, and — file more claims.
However, the script flips as both groups mature.
Moreover, this makes the overall expenses associated with having a car higher for women than men. For example, if you understand how to lease a car, you know doing so entails higher insurance premiums anyway because of the required coverages. When you add a gender tax on top of that, it becomes even more expensive for female drivers to lease a car.
This is particularly troubling when you consider a study conducted by the Insurance Institute of Highway Safety found 71 percent of all fatal crashes tend to involve men. Moreover, in accidents in which alcohol was involved, men were two and half times more likely to be the one driving drunk. And, men were found to be four times as likely to die in a fatal accident resulting from speeding.
Is That Even Legal?
The situation has gone largely unregulated for quite some time, though that is starting to change. Back in 2018, then California Insurance Commissioner Dave Jones instituted rules prohibiting gender discrimination in setting rates. He expressed concerns because he found no consistency in the way the actuarial tables were being applied.
Jones is quoted as having said he understands basing premiums on a driver’s record of citations and accidents. Those are things an individual can control. However, he feels using gender alone isn’t fair, because a person — generally speaking — has no control over that factor.
Traditionally, laws governing insurance discrimination have focused on race, national origin, religion, sexual orientation, and genetics. Gender, along with ZIP codes, age, and credit scores have been considered fair game, though most people have always thought men paid more than women.
So What’s Being Done About It?
We’ve already mentioned the new California regulations. The rules have also been changed in Texas to require actuarial justification for setting higher rates for one gender over another.
While the states of Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana do not use gender as a rating factor for car insurance premiums, the others are catch as catch can.
In the meantime, all motorists are advised to do everything they can to keep their rates as low as possible. After all, drivers have no choice but to carry auto insurance, as the law in every state except New Hampshire and Virginia requires it.
Final Words.
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