Does Gender and Age Affect Your Auto Insurance Rates? (2024)

Among the many other factors affecting your insurance premium, gender and age could easily be at the top of the list. You might wonder what causes these aspects to determine your premiums and why these insurance companies factor in the ‘age’ and ‘gender’ while providing insurance coverage to their clients.

In this article, we will delve into the ‘how’ and ‘why’ age and gender affect your car insurance costs.

How Does My Age Impact My Insurance Premium?

There are variations in average car insurance by age as insurers provide insurance based on the ‘risk’ you might have as an insured driver. With a much higher risk of getting into accidents and collisions, young and new drivers will have their auto insurance rates relatively higher than those of you who are experienced drivers and have adequate knowledge about road safety.

Since young teenage drivers are more prone to getting into riskier driving behaviors ranging from speeding, intoxicated driving, or lack of driving knowledge, the average car insurance costs by age vary significantly. This is primarily why, as you grow older, your insurance rates go down in comparison to when you are young and new to the world of driving.

What Does the Data Say About the Correlation Between Age and Driving-Related Risks?

Data-driven insights on the relationship between age and driving risks give us interesting information. Young and new drivers, especially teenagers, usually have a much higher risk of getting into accidents, which is why car insurance premiums are higher for them. This decreases when they turn 25 to 27 years old and become more experienced drivers aware of road safety and driving rules.

When people reach middle age and turn 75, the curve of their insurance rate goes up again because they are at a higher risk of getting into more accidents. Changes in vision, physical fitness, and attentiveness on the road are impacted when people get older, which means there is a greater risk, resulting in a higher insurance rate.

What Is the Correlation Between Gender and Insurance Premium Rates?

There is an intertwined impact of gender and age on the cost of insurance you get. This impact tends to fluctuate, grow, and diminish at several points in your lifetime. The data suggests that male drivers pay relatively more for car insurance than women. This is because men are more vulnerable and more likely to get into accidents that could be life-threatening (especially when they are young teenagers) than women.

Men also drive more and cover longer distances than women. Interestingly enough, there comes a time when this gap closes. This occurs when men and women reach middle age because the ‘risk’ decreases significantly. Companies do not only take gender or age into account as a sole factor in determining your insurance premium. Hence, there is no gender discrimination in car insurance rates. Your driving history record, location, and car type, along with your age and gender, are other factors that determine the insurance costs.

How Can I Save on Insurance as a Young Driver?

. Separate vs. a Multi-Car Policy

While there may be differences in average car insurance rates by age and gender, one way to save on insurance is to get your college-going young adult’s car on your pre-existing auto insurance policy. Getting a separate car insurance policy could be expensive for a first-time driver; therefore, it is better to register the car on the same policy that you already have to save up a good amount.

. Buying a Used Car

Suppose you are a college-going student looking to buy a car. In that case, it is advised to buy a used car to reduce the insurance costs by dropping additional coverages that can be taken when you get a brand-new vehicle, which would be relatively heavier.

. Getting Enrolled in a Safety Driving Course

Some companies offer discounts if you enroll and successfully complete their safety driving course, indicating that you are a safe driver and aware of the driving protocols. While signing up with the insurance company, ask if this option is available.

. Comparing Auto-insurance Rates

When searching for an affordable auto insurance company, make sure that you look around and do your research correctly, especially when it comes to comparing insurance quotes. Compare multiple car insurance companies with one another and keep an eye out for trusted companies with exceptional customer service; that way, your path to navigating the paperwork will also get more manageable.

. Exploring Discounts

For teen drivers, there are exclusive discounts available, especially if they are college-going students. There are several student discount options and student-away discounts for people going to college farther away from their homes. The key is to ask the insurance companies about these discounts to know if you are eligible for them or not.

. Keeping a Consistent and Clean Record

Keeping a clean driving record can help you save money. Some companies offer usage-based insurance coverage based on your driving performance. This coverage is usually calculated based on how safe your driving practices are. It is not only rewarding in the long run but also great for getting insurance at a reduced rate.

How Do I Save on Insurance as a Senior Driver?

As you grow older, your average car insurance rates by age will increase, no matter how good of a driver you have been with your years of driving experience. The relationship between age and auto insurance becomes directly proportional after a specific age group.

This is mainly due to the age factor, which makes seniors or older drivers more susceptible to getting into car accidents. Higher insurance costs are meant to simply mitigate the risks without causing any financial burden.

. Raising Deductible

If you think you can afford it, increasing your deductible is recommended. Increasing it will automatically cut your insurance premium, but make an informed and well-thought-out decision on this matter.

. Maintaining Vehicle Safety Record

Staying on track with your vehicle's safety record, primarily by upgrading the car's equipment, such as brakes and airbags, can help you become eligible for specific discounts, which can help you save on your insurance premium.

. Bundling Policies

Simply put, bundling policies means buying two from the same insurance agency you are registered with. Bundling two or more policies together is an excellent strategy for saving on costs and reducing additional paperwork.

Concluding Insights

While this article covers the significance of age and gender on your insurance costs, it is essential to acknowledge that various other factors also come into play when your insurance company is working with you to decide upon your premium.

It is super important to understand these nuances to make an informed decision for yourself and your family (if you have a college-going kid) so that you can easily navigate through the paperwork and documentation. Remember your insurance options, along with the factors discussed in the article, and remember to seek assistance from your auto insurance provider.