Why Women Have Lower Car Insurance Premiums

As a woman, how frustrating is it to hear all of your male friends whine about how unfair it is that you have lower insurance premiums that they do.  After this discussion begins, the next thing the men are complaining about is how good of a driver they are.  The question that inevitably enters your mind is, “If men are such good drivers, why do women get lower insurance rates?”  As such, this hub will answer that question.

Keep in mind, insurance companies are not arbitrarily deciding to charge male drivers higher insurance premiums.  Since insurance companies operate on a risk/reward business model, they have proven again and again that men drivers are statistically more of a risk than women drivers.  Since men are more of a risk, they receive the higher insurance premiums.

Let dissect these facts a little more.  Statistically speaking, male drivers, especially young male drivers, tend to be in more accidents than when compared to women drivers.  Not only are male drivers in more accidents, but these accidents then to produce more casualties and cost more than accidents that involve women.

When you think about this, it really does make sense.  For a moment, picture a hot rod flying down a main thorough fare.  Who is driving?  It is a young man or a young woman?  Of course, odds are that it is a young man driving foolishly.

This scenario brings another issue to light.  Most male drivers tend to drive rather recklessly and aggressively, whereas women drivers tend to drive considerably more cautious and security minded.  We believe this is because that is the way we are programmed.

If you need further proof, which is a scarier scenario?  A car driven by a teenage boy filled with 4 other males or a car driven by a teenage girl filled with 4 other teenage girls.  Most people would argue that the scenario with the car filled with boys is far riskier than the other scenario.

As we have demonstrated above, there really is a reason why men, as a whole, pay higher monthly insurance premiums than women.  While men may not think it is equitable, and it may not be, the whole purpose of an insurance company is to make a profit while rendering a valuable service.  If insurance companies were to charge members of both sexes the same insurance premiums, one of two things would happen.  Either everyone would end up paying higher insurance premiums or car insurance companies would go out of business, since they wouldn’t be able to generate enough of a profit to sustain themselves.