If you plan to buy a car, you must remember that most states require drivers to have an active auto insurance policy. As a first-time driver, it is vital to know the factors that can affect the premium that you have to pay. It seems that gender and age have a relationship with the average cost of auto insurance that drivers must pay. Data showed that young men are more likely to spend more on premiums and that it gets smaller as they come near to their mid-20s.
Gender’s Influence on Premiums
Some states allow insurance companies to consider gender in providing coverage to drivers. And in those states, auto insurers are more inclined to bill more premiums on women.
Auto insurance quotes from those states shed some light on the relationship between gender and premiums. Based on the collected quotes, female drivers' auto insurance premiums are 5% higher than their male counterparts. Female drivers are being charged with $1,124 annually for their coverage, while male drivers pay $1,069 every year for the same coverage.
In many key cities across the country, including Chicago, Seattle, and Miami, female drivers' average insurance premium is $172 higher than male drivers. On the other hand, gender is a non-factor in getting the cost of car insurance in Montana, California, Pennsylvania, Hawaii, North Carolina, and Massachusetts.
Age and Insurance Cost
Other than gender, age has a link on the amount of car insurance premium that a driver will be paying. Older drivers are paying less insurance coverage, while young drivers are paying more for their insurance policy.
On average, a 16-year-old driver will be paying a typical auto insurance coverage ranging from $2,593 to $6,777 per year. The amount is much higher than the insurance premium of drivers in their 20s. A 21-year-old driver will be paying an average cost ranging from $875 to $3,057 annually for the same coverage. As you get older, your yearly auto insurance will go down, and when you are already 55 years old, your annual premiums will be anywhere from $494 to $1,690.
Age and gender matter at least in the annual premium that a car insurer will charge a driver. But age and gender are the sole drivers of auto insurance cost. Other factors also contribute to the amount premium that you will be paying, such as the type of vehicle that you have and your miles per year.
At Mauser & Tobin Co., Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (516) 747-0171. You can also request a free quote by CLICKING HERE.