Woman Car Insurance – Why do Women Get Better Rates?

Although it may seem discriminatory, most auto insurance companies offer different prices if you’re a man than if you’re a woman.  Car insurance rates can be dramatically higher for male drivers, even if the driving records, types of cars, and other factors are all the same.  Why does your gender matter at all to car insurance agencies?

The sad fact of the matter is that if you’re a man, you’re much more likely to get in a car accident or break the law than if you’re a woman.  Car insurance agencies look at the statistics and use them to estimate the risk that they’ll have to make a big payout – and the risk is substantially higher for men.

The difference between driving risk by gender is much higher for the young.  Under 25 years of age, you’re likely to have the highest difference between the rate for a man and for a woman.  Car insurance agencies know that younger drivers are more likely to be daredevils and to show off for friends or dates by driving too fast.  There are also hormonal reasons why young men are more aggressive drivers.

Age is a tempering factor for both man and woman.  Car insurance companies see the likelihood of an accident drop sharply after the age of 25.  At this age, drivers are more experienced, and hormones have loosened their tight hold.  Not as many are dating, and those who are realize that the way to impress a woman is usually not to scare them with their driving.  Some of them may be married and may even have children, which is also a stabilizing force on their driving styles.

However, age doesn’t solve all of the problems of driving risk for a man and for a woman.  Car insurance companies note an increase in the risk factor around the time drivers hit the age of 40 – right in the middle of the mid-life crisis.

Driving time is another factor that influences the discrepancies rate for a man and a woman.  Car insurance agencies note that men tend to drive more; it stands to reason that people who put more miles on their cars are more likely to get into accidents.

Will the difference between car insurance for men and women disappear?  If the current trends continue, it might well.  In the last few years, deaths from car accidents have dramatically increased for woman drivers.  Car insurance agencies also note that more women are getting licenses and putting in more miles on the road.  If current trends increase, discounts for female drivers could disappear.