From the gender pay gap to the pink tax, women often get the short end of the stick when it comes to finances. However, car insurance rates are one area that women tend to spend less on than their male counterparts in their 20s. With that said, there are still ways to save more.
Why do Men Pay More for Car Insurance?
Men and women in their 20s pay more for car insurance than any other age demographic, but in most states, young men pay $400 or more on average. Based on statistics, men cause more car accidents and therefore cost insurers more in claims payouts than women do.
Why do Women Pay More for Car Insurance?
But wait, if women are safer drivers than men across all age groups, then why are women aged 40-60 paying more (an average of $100-$500) for car insurance? Why do some carriers choose to charge women more for insurance, despite evidence that they’re a lower accident risk?
No one is really sure, and if there is a reason, sexism may be the culprit. For both genders, not just women. Sex doesn’t seem to reveal a consistent risk assessment and, therefore, shouldn’t be used at all. Unfortunately, it’s being used now, and women have to navigate this factor.
How Can Women Lower Their Car Insurance Costs?
Most car insurance companies won’t offer women-specific discounts, but there are multiple ways you can lower your insurance costs. Here are 7 ways to find cheaper insurance.
Get Car Insurance Quotes Online
The quickest and easiest way for women to get the cheapest car insurance is by comparing quotes from multiple insurers. Online comparison sites like cheapinsurance.com can populate hundreds of quotes. Be sure to check back frequently to ensure you’re getting the best rate.
Become a (More) Safer Driver
Insurers pay more attention to your driving record than any other factor when creating a quote. If you’re already a safe driver with no demerit points on your license, then you’re probably getting the best rates available. If you have 3-5 demerit points, start driving safer to remove them.
Buy a Cheap to Insure Car
The make and model of your vehicle determine how expensive your car will be to insure. As of 2022, minivans, crossovers, SUVs, and pickups are the cheapest car type to insure. Based on car make, Nissans, Hondas, Toyotas, and Chryslers are much cheaper to insure overall.
Bundle Your Policies (or Get Married)
As strange as it sounds, insurers will lower your insurance premiums if you’re married. While there’s limited evidence to back this up, insurers assume you’re a safer driver if you have a marital bond. However, you can also bundle policies with your partner to lower your rates.
Use Group Affiliation Discounts
If you’re affiliated with a group, your insurer may offer you a discount. For example, members of the Society of Women Engineers will receive a discount if they insure with Geico. There are many other societies and groups insurers will offer discounts for, so check for your eligibility.
Shop for Permanent Discounts
Even if you aren’t a part of an eligible group or society, you can still benefit from a few other discounts. For example, if you set up direct deposits and pay your bills on time or install safety features or anti-theft devices installed in your car, you could save hundreds of dollars a year.
Don’t Let Your Policy Expire
Always pay and renew your policy before it expires. Otherwise, insurers will see you as an uninsured driver and will raise your insurance costs. The best way to avoid this penalty is by setting up a direct deposit. If you plan on switching, don’t let your policy lapse before you do.
