Ever wondered why women pay less in car insurance as opposed to men? This is something that has been going on for several years now until one transgender man put the question into action. The man was able to change his gender registration’s name from a male to a female. And he confirmed that his entire insurance cover was slashed in a significant percentage.
So, he started to pay less for his insurance cover as opposed to the amount of money he used to pay before, and he even got a refund of the money that he had paid excessively.
Well, insurance companies tend to “favor” women more than men when it comes to car insurance, since women are viewed to be more careful when it comes to driving. Statistics show that the highest number of accidents that are caused by careless driving are from men and not by women. Besides, a car insurance company has to take into account various factors before they even give your car insurance rates.
One of the major factors that they consider is the gender of the person who wants to apply for the insurance premium. If a male and a female are applying for the same car insurance, a woman will be given fewer payment rates than men. Why?
• Women get in fewer Accidents.
Women are careful drivers, and very few women will be found speed driving on the highway, even if the road is clear, unlike men. If a woman is carrying a baby in the back seat, she will make sure to drive at the lowest speed to keep her kid safe unlike for a man. This action has led to women falling victims to fewer accidents.
• Unlikely to Buy a Car that is Expensive to Insure.
Unlike men who do not care about their expenditure when buying their machines, women tend to buy cars that they feel they will be comfortable to pay for. Women also focus more on the comfort and safety of their family when choosing a vehicle. So, they only select a simple and reliable car which is even less costly in ensuring. Some insurance companies offer coverage rates which, have been quite low for their customers since the average car insurance premiums in Alberta are $1,179 although you can also find other companies offering fewer rates according to your car type.
• Drive Fewer Miles.
A woman cannot be able to drive for long miles as opposed to men, and this is another factor that the insurance companies put into consideration when giving the rates.
• Less to Commit Driving Offenses.
Some of the conventional driving offenses that people are charged with are driving under the influence, over speeding and even violating the driving rules. Once in a while, men may break these rules, and in the case of driving under the influences, they tend to get into many accidents.
Some of the minor factors that the insurance companies look at;
Gender being the primary factor that determines the rate of car insurance, there are other minor factors that the insurance companies refer to as well.
The Cars Make and Model
The design of the car plus the components are the things that the insurance company will consider before they give you the rates to pay. This is because some parts are quite hard to find on the market and others are way expensive in case you will need replacement in the future. Therefore, the company has to gauge if the car will still give them value if they claim it after an accident or they will have to discard it once it gets damaged. If you drive a 2016 Camaro Convertible plan on paying more money!
• Your Driving Records
This is something that applies to all including women. The insurance company has to ensure that they are secured, and they will not end up spending too much money on the car repairs based on your reckless driving. If you have a reputable driving record from your previously owned cars, they usually consider this since they believe that they will not spend too much of the coverage pays for the damages.
• The Age
The age matters when it comes to either buying a car or applying for an insurance cover. Generally, young people are believed to be a bit reckless and get into accidents most of the times. This age ranges from 18 to 25 years. Therefore, if you are planning on getting a car between this age, rest assured that the insurance charges will be high.
The gender of a person does influence the kind of car insurance rates they will be given since women tend to pay less as opposed to men. If you were wondering why your wife is paying lesser rates than you, the above-discussed points are some of the factors that cause women to pay less for insurance covers, unlike men.