Why Women Get Lower Insurance Premiums Than Men

It seems that whenever you bring up the subject of insurance premiums, you usually will hear the men hiss about how unfair it is that women get lower insurance premiums. Usually, you will hear men drone on about how unfair it is since they are the better drivers. Because we often hear this argument, we are going to explain why women get lower insurance premiums.

There have been numerous insurance company studies that have shown that women are in fewer automobile accidents than men on a per capita basis. Not only are women in fewer accidents, but the accidents that they are in seem to be less expensive when compared to accidents that involve men.

Additionally, women tend to drive smaller and more practical cars compared to men. This fact, coupled with the fact that women tend to drive many less miles than men, lead to a reduced risk for insurance companies.

Another factor leading to lower insurance premiums is the fact that women tend to be more risk adverse and safety conscious then men. This can be blamed on most men's general propensity towards aggressive driving. If you need further proof, just picture 4 boys in a car, and you will understand the true meaning of aggressive driving.

While most people feel that the insurance companies adopt a sexist attitude, the fact is that it simply makes business sense to charge male drivers higher insurance premiums. Since the car insurance business model is based on a risk/benefit ratio, it would be to the insurance companies' detriment to charge the same insurance premiums to both male and female drivers.

In conclusion, we believe that you now understand why female drivers are charged less than men for the same automobile insurance coverage. While it may not seem fair from an equity perspective, it definitely does make sense from a business perspective.