Car insurance costs are based on several factors and the underwriting rules of different companies. One of those factors is sometimes gender. It turns out that young women may often get a lower rate than young men.
First, it's important to understand that one of the driving forces behind auto insurance rates is the likelihood of having to pay a claim. This is "risk" and the more risk an insurer sees in an individual, the higher the rate will be. Some companies may not even insure certain individuals based on risk.
Now lots of things can affect risk, such as the type of car (think speedy MGB versus a Volvo), the age of the driver (teens are less experienced and are typically involved in more accidents), the amount of driving you do (commuting to work 20 miles every day creates a greater chance of involvement in a collision versus driving only to church on Sundays) and more. All of this is based on statistics.
As it turns out, statistics also show that young women tend to get into fewer and less costly accidents than young men. This may be because younger males are often more aggressive drivers. It's also suggested that males break more traffic laws. Whether this is always true or not, auto insurance companies are taking notice and will often rate a younger female driver lower than a younger male.
So how do you make sure you're getting the lowest car insurance cost? Of course, you should keep an impeccable driving record. And whether you're a man or a woman, one of the easiest ways to save on auto insurance costs is to shop around. This is because each insurer has different underwriting and rates could vary quite a bit from company to company. It's recommended that you get at least three different quotes for comparison. An insurance comparison Web site is one convenient way to get several comparison quotes in one location.
