Getting
car insurance is of utmost importance once you purchase a car. When you are
selecting the insurance policy you are agreeing on the rules and regulations
and also on the car insurance premium
that you need to pay to the insurance company.
It
is important to understand exactly how your insurance rates would be calculated
so that you can select the best and fairest policies in the market. Proper
study and research show that car
insurance premium varies due to
gender and age. It is seen that men typically pay significantly higher car insurance premium than women.
Presumably, these discrepancies are based on statistics; men are more likely to
be involved in accidents than women. However, even amongst female drivers, the
rates are unequal. According to a survey report it was found that the insurance
rates are 68% lower for a married woman with a college degree, a professional
job and who owned a home, when compared to a single woman, with a high-school
diploma who rented her home in a moderate income area.
It
is also found that young people between the ages of 16 and 25 have the highest
insurance rates, and young males pay much more than young females. Once the
drivers reach the age of 26, they pay more or less the same rates for the next
40 years until they reach “senior citizen” status.
But
this age-based pricing has also come under controversy by certain groups who
prefer using driving records to determine amount of the insurance rather than
age. In this scheme, everyone would start off with a basic rate that could go up
based on accident claims. However, few insurance companies have decided to adopt
this pricing method, while others still argue that higher car insurance premiums based on age is ethical, as young drivers
are mostly involved in fatal crashes, and are at a greater risk of
alcohol-related car accidents than older drivers. So many insurance companies
consider both age and gender in deciding the insurance premium amounts.
Summary:
Both
age and gender plays an integral part in determining car insurance premium amounts.
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