Car Insurance: Why Age and Gender Matters?

Posted on: Apr 25, 2022 | 3 Min | Written by: HDFC ERGO Team

Car Insurance: Why Age and Gender Matters?

When it relates to car insurance, gender and age have a huge influence. Typically, women's car insurance is less expensive than men's car insurance due to several factors. Young drivers generally pay higher car insurance rates because statistically, they are more likely to get into a car accident. The rates tend to go down as you get older and have more driving experience.

Gender Difference in Car Insurance Premium Rates

According to research, female drivers are charged less on car insurance premiums than their male counterparts. As drivers become older and gain more experience in driving, the gender discrepancy in rates shrinks to insignificance. Women pay somewhat more than males in various age ranges, although average premium rates are around the same around the age of 35. Female drivers begin to pay less premiums as they become older. One estimated reason why male drivers pay more for car insurance than women is that men drivers are more challenging to insure. Men often drive more kilometres than women drivers and are more prone to engage in unsafe driving practices such as speeding, driving while intoxicated, and not wearing a seatbelt. Many studies show that women are actually safer drivers in many ways than men. While the gender gap in auto insurance rates has narrowed slightly in the last few years, it is still there.

Age Difference in Car Insurance Premium Rates

● Young Drivers:

When it comes to auto insurance, there's a big difference between getting coverage with your parents and on your own. Our recent analysis found that when you get an auto insurance policy and raise your driving time, the cost goes up considerably. While there's no denying how convenient it can be to add your teen driver to your automobile insurance policy, you must know the pros and cons of doing so before you make a decision. If you are currently on a tight budget, adding your new teenage driver to your current auto insurance policy might end up costing more than you expected. The good news is that by taking the time to shop around for cheap car insurance for teens, you can save some money in the process.

Car accidents are one of, if not the leading cause, of death for teens all over the world. Some parents try to take away all their teen's driving privileges or instil other restrictions until they are 18. However, research has shown that this might be a mistake as some restrictions can increase risky behaviour, such as increased casual driving with friends, driving at night and driving under the influence.

The following are some of the most prevalent risk factors for young drivers:

1. Lack of skill.

2. Driving at night.

3. Ignored Seat belts.

4. Driving while distracted.

5. Speeding.

6. Driving while intoxicated.

● Senior Drivers:

When you reach the age of 65 years, your auto insurance premiums will begin to rise. A 75-year-old man pays much more for an auto insurance policy than a 55-year-old man. And after you reach the age of 80 years, there is another increase in rates beginning at age 75.

The likelihood of you being in a car crash increases with age. The older we get, the more prone we are to injury or death in a car accident. We can blame our stiffening joints and more brittle bones for this. It's a sobering thought when you start to process it. It's an unfortunate fact of life that eventually catches up with us all because unfortunately, you can't avoid getting older.

How to Save on Car Insurance Premium?

1. Consider Voluntary Deduction:

Voluntary Deduction has been designed to help you lower your car insurance premiums given that you are choosing an amount to pay from your insurance claim amount. You can either pay the whole amount or lower it by opting for a voluntary deduction.

2. Install Anti-Theft Equipment:

The car insurance premium is higher when safety features are absent and lower in case they're present. Some of the prominent safety features that affect your premium include airbags, collapsible steering wheel, anti-lock braking mechanism etc.

3. Ignore Small Claims:

Making small claims will not only cost you money but also affect your No Claim bonus. Receiving a No-Claim bonus every year guarantees you save money on your car insurance renewal.

4. Ignore Expensive Gadgets:

You need to remember that any modifications made to the vehicle are likely to affect the premium amount. So, modifications such as rear spoilers, alloy wheels, and external aesthetic changes do have an impact on your premium amount.

5. Join Road Safety Organisations:

Organisations that promote road safety, such as the Indian Automobile Association, are also beneficial when it relates to vehicle insurance premium amounts.

Conclusion

A variety of people factors influence the cost you pay for your car insurance. Some are controllable like your past driving record, and others are not such as your age and gender. Although there are many factors that go into determining the cost of your car insurance, the good news is that several of them can be managed.

As with any other product on the market, there can be significant differences in the cost of coverage for the same premium amount. Getting the best value on your car insurance policy is something you plan for and work toward every single year. By staying on top of your personal factors, as well as conducting an annual review, you can keep costs down without sacrificing protection. Having a solid understanding of how to get the best deal and shopping around will help you avoid costly mistakes, too. As always, do your homework, shop around, and speak up if something looks suspicious or feels wrong!

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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