I’m sure you’ve heard men talk about women as bad drivers, not paying attention on the road, being slow, all that sort of stuff. But guess what, the statistics show that women are actually MORE careful drivers than men. That’s why auto insurance companies offer cheap car insurance for women!
In auto insurance world women get lower rates than men. That’s a fact. If you take a man and a woman with the same driving characteristics, the woman will end up paying less for her annual premiums.
Here are the characteristics:
- Insured with auto insurance company for 3 years
- No claims or accidents for three or more years
- No DMV (Division of Motor Vehicles) points
- More than 3 years of driving experience
- Policy limits are greater than those required by law
- Full coverage (liability, comprehensive, collision) on one or more car on the policy
- Absence of non-payment cancellations
- Low annual mileage
- No DUI, DWI charges
This is a list of characteristics of a perfect driver for an insurance company. This driver will pay the least amount annually and even less if it’s a woman driver. I’ll explain:
You see, insurance companies go through a whole lot of statistical data to discover what types of people are likely to file a claim with their insurance company. Based on this statistical data the insurance companies charge some people more and some people less. Some insurance companies have tier system that works like this:
If you have less than 3 years of driving experience and you had at least one motor vehicle violation in the past 3 years you’ll be placed in Tier 5.
Naturally, the auto insurance company wants to maximize profits and one way to do this would be to compete for drivers who cause the least amount of “trouble” to the insurance company by giving them a discount on their premium. For example one company may give a 25% discount to those perfect drivers, another company may give 35% discount and the new insurance company that’s just entering the market can set their discounts to as much as 45% off. Keep in mind that each insurance agency also rates the statistical data on drivers differently, hence the different prices. For example, one company may value driving experience quite a bit while it may be almost irrelevant to the other auto insurance company.
For the most part the statistical data shows that women drivers are much more careful than men and that’s why they provide cheap car insurance for women. Women drivers speed much less, have accidents less often and when they do, they cause less damage than men drivers. Statistics also show that women are more likely to pass their driving license test than men drivers.
Here are some more tips on how you can save on your auto insurance premiums, besides being a woman:
- Select a higher deductible
- Drive a non-luxury vehicle
- Insure your home, car and health at the same insurance company (Insurance companies usually give a 10% to 15% decrease on each policy that you have with them if you have more than one)
Now that we’ve got cheap car insurance for women handled there are many more tips on how to lower your insurance premiums in this article: First Time Car Insurance