Does Age And Gender Matter When It Comes To Auto Insurance Rates?

Today, here are some factors when getting auto insurance. And if age and gender even matter regarding auto insurance rates.

Auto Insurance Rates for Age and Gender

Auto or Car insurance is a type of insurance that protects you from financial losses in case of damages to properties or persons involving your car. Almost all U.S. states require car liability insurance before you can operate a vehicle. 

Benefits Of Having Auto Insurance

• Car insurance can give you financial protection. If you cause an accident on the road, you will be responsible for all the related costs. To pay for these expenses, your liability coverage can help. Comprehensive coverage can help pay for repairs and replacement of parts for your car if damages are not from a collision. This includes damages caused by falling trees or posts, fires, and other natural disasters.
• Medical payments coverage can help pay for medical-related costs regardless of who is at fault
• Save you out-of-pocket costs in case you are sued.
• Gives you peace of mind knowing that you can afford to pay for any accident-related costs

Factors Affecting Auto Insurance Rates (Age and Gender)

Many factors affect your auto insurance rates. Two factors play a substantial role in calculating your insurance rate. These are:

Age

Young, new drivers are the most expensive to insure. The risk factor for this group is high, and insurers consider driving experience when computing the premium rate. 

According to the Centers for Disease Control and Prevention (CDC), teens aged 16-19 are three times more likely to get into car accidents than people over 20 years of age. Almost 2,400 teens in the United States were killed in 2019, and over 250,000 were treated for injuries due to motor vehicle crashes. Risk factors are due to the following reasons:

• Not using seatbelts

Teen drivers are notorious for driving without wearing their seatbelts. They almost always forget, especially if they are new drivers as well. The National Highway Traffic Safety Administration (NHTSA) reported that in 2019, 22,215 passenger vehicle occupants were killed in car crashes, and 47% were not wearing seat belts.  

• Inexperience

New teenage drivers are eager to drive alone. The first 6 months of solo driving is when most accidents happen. Because of their young age, they are also prone to making decision errors. 

• Night and Weekend Driving

Teen drivers will likely get into car accidents between 9 pm and 6 am. The peak is before midnight. Alcohol-related crashes mostly happen on Friday nights and Saturday evenings. 

More Factors Affecting Car Insurance Premiums

• Speeding

Teen drivers are more likely to speed and allow a shorter headway when driving. 

• Distracted Driving

Teenage drivers who text while driving are 20 times more likely to crash. Other forms of distraction include talking on the phone, eating while driving, and reaching for other things inside the car.

• Alcohol Use

Drinking and driving is a notorious combination. The same blood alcohol concentration will affect a teenager and an adult differently. Teenagers are more likely to get drunk faster, and if they decide to drive, the likelihood of a car crash accident will shoot up.

Adults or 20-year-olds and up are generally more experienced drivers. They are more careful, and safety is their priority. By this time, the cost of auto insurance begins to drop. And if you have a good driving history and relatively few insurance claims, you will enjoy reduced premium costs throughout adulthood. 

As you reach age 65, your premium cost will likely increase again but not as high as the rates for new teen drivers. Age-related factors are considered, which include loss of hearing, failing vision, slow mental reactions, and situational awareness. Driving in traffic and bad weather conditions may also become more challenging for older drivers. 

Safety Tips For Teen Drivers

• Everyone in the car should wear their seatbelts all the time
• There should be no more than 2 friends inside the car for lesser distraction
• Music volume must be kept at a low level 
• No texting is allowed when driving
• No phone calls are allowed when driving
• Do not drink and drive. Assign a designated driver, or do not bring your car at all.
• No nighttime driving, if possible
• No long-distance driving
• Avoid driving when angry or tired
• Pullover if you need to check the location and directions on your GPS
• No eating and drinking while driving
• Use turn signals appropriately
• Follow speed limit signs

Gender

A widespread assumption is that men pay more for auto insurance than women. While it is true that men pay more, the amount is not significantly high. More factors are taken into consideration for premium price aside from gender. Some U.S. states do not even allow gender to be used to determine prices. 

Gender used to be one of the significant risk factors that insurers consider. The reason behind this is:

• Men are more likely to over speed
• Furthermore, men are more likely to drive under the influence
• Men are more likely to drive without seatbelts
• Men are more likely to buy sports cars

Here are other factors that are combined with age and gender to determine premium cost:

• Driving experience
• Where you Live
• Credit Score
• Marital Status
• Claims History
• Type of Vehicle
• Age

To make sure that you don’t spend as much on premiums if you have a teenage male driver, you can, as a parent, follow these tips:

1. Let your teenager drive a safe vehicle. Resist the urge to buy your son that new sports car he has his eye on. Second-hand cars are better, but if you must, buy him that sedan with safety features instead.
2. Encourage your son to maintain good grades and get a “Good Grade” discount. He needs to get at least an average of B to be eligible. 
3. Enroll him in a driving course to improve driver knowledge and skills. Once he completes the program, he will be eligible for a discount on auto insurance.
4. Install telematics in your child’s car. This will help the insurer monitor your son’s driving habits and track pertinent data. 
5. Bundle all your insurance policies. Have your agent recalculate to include your teen driver in your car insurance.
6. Call several insurers and ask for quotes. There are times when other insurers will give discounts to a new client. They can be much cheaper than bundling with your existing insurer.
7. Teach your child good driving habits. Before you let him drive alone, ensure he is ready to face road challenges. 
8. Ensure his car has safety features like airbags, car alarms, seat belts, and anti-lock brakes. 
9. Set limits. A parent-teen driving contract with rules can be used to get discounts. Some rules you can include are wearing seatbelts at all times, no texting or using the phone when driving and a maximum of 2 passengers inside the car. 
10. Drive safely. It is essential to remind your child to always drive safely. A clean driving record will eventually earn him low insurance rates. 

More Tips Regarding Auto Insurance Rates by Age

Male teenagers are discriminated against when it comes to insurance rates. They are perceived to be more aggressive and risk-takers when driving. This may be true for some, but it does not apply to all male teen drivers in most cases. 

Females are becoming more independent today. More women are driving themselves even at night. They are also more likely to get distracted easily. Although there are fewer studies about female teenage driving, it will likely be comparable to teenage male driving in a few more years. 

There are a lot of factors that determine auto insurance rates. They are all critical to know. But the best thing to do is instill in your child safe driving habits. Be a good example to them. They will learn the importance of safe driving if they see it in you. Spend more time with them when they are first learning to drive. You can see how your child will fare once they drive independently. You will be the only one to say when your teenage driver is ready. 

We Can Help You With That

To help you save on auto insurance and to save up on auto insurance rates, you can contact our knowledgeable team members here at Advantage Insurance Solutions (AIS) here in Denver, CO. We can provide you with a comprehensive guide on getting car insurance for your family. Pick up that phone and call us toll-free today, and get covered!