Low Cost Insurance For Women
When you first look at the insurance industry it may seem all the companies are sexist and discriminatory against men. After all, if you take a woman and a man who are about the same age, and with the same type of driving history, and with the same sort of car, a woman’s auto insurance premiums are almost certainly going to be less than her male counterpart. Why is this? Do insurance companies have something against male drivers, or do women have something special going for them?
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Actually, neither speculation is valid. Insurance premium rates are based partly on actuarial tables, which is just a fancy way to describe a set of statistics that tell what type of risk a particular customer will present to the insurance company. The mathematical workup that determines a customer’s insurance premium takes into consideration many factors, including the customer’s age, driving history, the make and model of the vehicle being insured, the color of the car, how many miles will be driven (on average), and of course the driver’s gender.
Insurance companies aren’t in business to lose money, so it is important that they know the exact sort of risk that each customer is going to create. In this case, the insurance company has determined that the customers gender has historically shown to correlate with his or her level of risk. In simpler terms, it means that women are less likely to have accidents, and the accidents they do have are less serious. This decreased risk of accidents translates into lower car insurance premiums if you’re a female driver.
There are a few ideas about what causes women to be better risks for auto insurance companies. Some say it is because women are less aggressive on the roads, perhaps because women have less of the hormone testosterone, which is responsible for levels of aggressiveness in men. It could also be argued that as a class of people, women are generally more careful and nurturing than men, and this plays out in their respective driving habits. Thirdly, these two traits (less aggression and more nurture and carefulness) could combine to cause women to be less likely to compete on the road than are men.
So are insurance companies biased against men? No – they just want to protect their assets, and anyone who presents a high risk for them is going to have to pay higher premiums, regardless of their gender. Unfortunately for men, that means they will have to bear the brunt of their gender’s tendency to get into costly accidents