Understanding Insurance Terminology

How Age, Gender, And Marital Status Can Help Or Hurt Your Auto Insurance Premiums

26 June 2017 by Vilma Maki

Determining how much you will pay for your auto insurance policy is not easy to do on your own. The methods insurance companies use for calculating premiums are complex and involve dozens of different factors. Some of the factors that affect your rates include the type of car you have, your driving record, and the number of miles you drive, but did you realize that your age, gender, and marital status are also factors that play a role in your auto insurance premiums?

The Effects of Age on Car Insurance Rates

A person's age is a factor that plays a role in auto insurance rates, and this can help or hurt a person's rates. Insurance companies use statistical information to calculate premiums, and the information they use shows several interesting details about age:

• People who are under the age of 25 have a greater chance of getting in accidents and filing claims, and this is often due to a lack of experience behind the wheel. It is also due to the fact that younger drivers often take part in risky behaviors when driving, even though this is not always the case with young drivers.
• People who are over the age of 65 have a greater chance of getting in accidents, and this can be due to health problems or medication.

If you are currently under 25 or over 65, insurance companies will automatically place you in a high-risk category. This means that you will pay higher rates, simply because your age is within a category of people known for having higher chances of getting in accidents. There is nothing you can do about this; however, if you are turning 25 soon, you may want to request a new quote after your birthday.

The Effects of Gender on Car Insurance Rates

Gender also plays a role in the amount you will pay for your auto insurance coverage. Insurance agencies have learned that men have a higher chance of getting in accidents than women, which means that men pay more for their car insurance rates. One of the leading reasons for this is that men tend to drive more aggressively and take more risks while driving. Women, on the other hand, tend to have safer driving skills and are less likely to take part in risky behaviors while driving.

The Effects of Marital Status on Car Insurance Rates

Finally, if you are married, you will probably pay a lower rate on insurance than if you were single. The interesting part about this is that it appears as though people driver more safely if they are married compared to when they are single. While insurance companies are not exactly sure why this is, the statistical information they use to calculate rates continues to demonstrate patterns with this.

While you should not rush out and get married simply to save money on your insurance rates, you should notify your insurance company if you do end up getting married. You could qualify for a discount after your wedding, even though you may not change a single habit with the way you drive.

These are three factors that are completely out of your control, yet they will affect the rates you pay for auto insurance. If you are currently in a high-risk group because of your age, gender, and marital status, you can look for other ways to save money on auto insurance. To find out what types of discounts you can get on your auto insurance policy, talk to an insurance agency that specializes in auto insurance. The agent can help you find the best and most affordable policy for your needs.   

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