Why Your Age, Gender, and Marital Status Make a Difference in Your Insurance Premiums

Why Your Age, Gender, and Marital Status Make a Difference in Your Insurance Premiums
  • Opening Intro -

    When it comes to securing your auto insurance coverage, there are certain things over which you have no control.

    You will be charged higher premiums simply because of your age, gender, and marital status.

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This might seem unfair, but the insurance carriers base their reasons on legitimate automobile accident statistics, so it’s best to “suck it up,” if you will, and search for the most coverage you can get for the least cost. Here is why this trifecta raises the odds against you.

1. A Discussion About Age

If you are a beginning or elderly driver, statistics show you are more inclined to cause an automobile accident. It’s just a simple fact. When you first learn how to drive, you begin to build the skills necessary to become a safe driver, but this takes time. Even though you are taught safe and defensive driving in school, and even though you have to pass a written and vehicle driving test to secure your license, you will only develop the anticipatory skills and the reflexes required to keep a vehicle safe in an emergency situation through experience.

As you age, these skills and reflexes become slower, and there’s nothing that can be done about that. Most people lose their 20/20 vision, become hard of hearing, and have difficulty with fine motor skills and coordination. For some, this may be due to a related illness; for others, it’s just a fact of getting older. Either way, you pose more risk on the road as a driver than you did 20 or 30 years ago, and the insurance company takes on that additional risk when it underwrites your policy. Young or old, you will pay more for your insurance coverage.

2. That’s Right Men, Women are Safer Drivers

There’s a stigma attached to women drivers, and there has been for decades. A majority of men think they are better drivers than women are. Guess what, gentlemen? Statistics speak otherwise. CarInsuranceCheap.net confirms that male drivers are more reckless than female drivers are; especially young males who like to use their lead feet. If you have age and gender going against you, plan to pay a pretty penny for your automobile insurance, and if you don’t believe that women are safer behind the wheel, here’s what CBS Money Watch had to say on the topic as well.

According to the major network, a study performed by Quality Planning presented some interesting facts on this debate. Men are over three times more likely than women are to be pulled over and ticketed for driving recklessly and for driving under the influence. Quality Planning says this is because, “Women are on average less aggressive and more law-abiding drivers.” Men do win the award for knowing better how their vehicles operate, including familiarity with electronic stability control and other safety equipment.

3. The Old Ball and Chain

If you are married, most insurance companies consider you more responsible. Huffington Post reports that a study conducted by InsuranceQuotes found, “… marital status is almost as significant in car insurance pricing as age and gender.” So what does this mean in statistical terms? If you are 20 years old and married, you’ll pay 21 percent to 28 percent less on your automobile insurance than your single counterpart. That’s significant savings, but it doesn’t mean that you should say, “I do” for the insurance savings alone, no matter how tempting.

Age also plays a role in this equation. Once you celebrate turning 25 years old, you’ll see some significant cost savings on your automobile insurance, married or single. If you are married, however, you’ll save 7 percent over your single friends who turned 25 as well. Why? The R Street Institute Group, a nonprofit research company, states that married people are more responsible and careful. It’s that simple. Once you take the plunge, and especially after you have children, you tone down your driving to a safer level, and insurance companies take note.

These are the reasons why insurance carriers consider a driver’s age, gender, and marital status when they review underwriting an automobile policy. The bad news is if you are a young, male, single driver, you’re going to pay more. The good news is as you age and your life changes, your insurance rates will go down provided you stay safe behind the wheel.

Money Management reference:

maintaining good credit

 
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Last update on 2017-04-27 / Affiliate links / Images from Amazon Product Advertising API

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