Vehicles

Auto Insurance

How is Risk Calculated?

What a lot of drivers do not realize is the calculation of car insurance premiums are not just based on solely what risk you pose as a driver but also the variables around you - such as your vehicle, your place of residence and how many miles you drive. What car insurance companies try to determine is the overall risk of you filing a future claim. Whether or not the cause for submitting a claim lies with your fault is only one piece of the puzzle.

Men and women certainly have significant differences in a wide range of variables used for calculating risk. For example, according to a report published by the Insurance Institute for Highway Safety some important gender differences include:

• More men die every year in motor vehicle accidents than women
• Men typically drive more than women
• Men often engage in riskier driving than women (such as speeding, not wearing a seatbelt and driving under the influence)

Another interesting statistic was that crashes involving male drivers were more severe than those with women drivers. However, if the car crashes compared were of equal severity in terms of speed, objects hits etc... then females are more likely to be killed.

The IIHS also reported in 2008 there were 37,261 accidents resulting in fatalities and 29% of these involved women drivers compared to 71% for men.

Because of industry research like previously stated, women will almost always get lower car insurance quotes compared to her male peer. However, since gender is only part of the equation you need to learn about car insurance in order to find the best rates.