Did you know that in 2018, women paid more than men for car insurance, read more to learn why!
Finding Cheap Car Insurance for Women
It is true that men pay about 0.68% less than women do for car insurance. That is $4.50 per six-month policy. While gender may not be a major factor in rating, insurers look at it as a way to calculate the price for risk. We will examine the ins and outs of car locating car insurance that is affordable for women. The first thing we plan to discuss is the most affordable companies.
Most Affordable Insurance Companies
|Insurance Provider||6 Month Premium Average|
The table above shows the average 6 month premium of major insurance companies. With this chart, we discover that the cheapest car insurance for women is USAA. While you must have a military background, or be a direct family member of someone who has one, USAA sets you back $484 every 6 months. That is cheaper than the average of other companies by about $270. If you do not qualify for USAA, then your next best choice is Nationwide. Under $560 every 6 months, this is the second cheapest car insurance for women.
Are Insurance Premiums Affected by Gender?
Insurance companies use many different factors in deciding on a policy premium for a driver. Gender is just one of the many attributes that are used to determine what kind of driver a client may be. When it comes to younger clients, males under the age of 25 are looking at significantly higher rates to those of a young female driver. This is because young males are seen to be more likely to get a moving violation or be involved in an accident. That makes them more expensive to be insured.
As clients get older, the tables turn, and women pay slightly more than men.
|Gender||6 Month Premium Average|
However, there are states that are slowly starting to do away with this methodology: Hawaii, Pennsylvania, Massachusetts, California, North Carolina, and other states. They are beginning to no longer count gender as a factor. Moreso, Washington DC, California, and Oregon also recognize the other gender options, such as non-binary. In 25 states, women pay more. In 21, they pay less.
Saving on Car Insurance
While the difference paid between women and men drivers is small, there are still additional ways that women can save money on car insurance.
Insurance Policy Discounts
Multi-policy Discount- This is a discount that takes into consideration multiple policies under the same insurer. The most common multi-policy is home/auto, or auto/renters. Both policies are affected by the discount, respectively.
Defensive Driver Discount- For this discount, a defensive driving course is required. You must take a course and present proof of completion to your insurance company. The thought behind it is that because of the class, you will be a safer driver. That means you are at less risk of filing a claim. Make sure that your insurance provider does, in fact, accept this discount before you take the course.
Equipment Discount- This is a discount that is based on the additional equipment and features your car may have. Anti-theft devices, and like services, are all taken into consideration for this discount. While the discount is smaller than the others, it can still make a premium payment more convenient.
|Safety Device||Annual Premium Average||Discount|
|Electronic Stability Control||$1,315.00||$5.00|
While these discounts may not save you big bucks, they are generally averaged across all states through each insurance company. Some insurers/states might give a better discount even.
Good Driver Discount- In the event that you have a clean driving record (Free of citations and Accidents), you could qualify for a good driver discount. It typically has a high value and is oftentimes automatically added to the policy when your MVR (Motor Vehicle Report) is pulled at the beginning of the policy. If you are sure that your driving record is clean and you aren’t receiving the discount for it, make sure you talk with your insurer about the good driver discount if it is only right that you benefit from a clean driving record. Below is the average of how your premium is affected by accidents/citations.
|Citation/Accident||Increase in 6 Month Premium|
|Excessive Speeding 21-25 Over||$166.00|
|Excessive Speeding 16-20 Over||$154.00|
|Excessive Speeding 11-15 Over||$140.00|
Military Discount- Military discounts are honored at many insurance companies. These discounts cover those who are former or active military members as well as their families. The qualifications and amount of the discount can vary, so make sure you consult with your insurance company to see if they offer it!
Multi-Car Discount- Just like the multi-policy discount, you can get a deduction from your premium based on having multiple cars under the same policy. Generally, this discount is added to your policy when you place the second car on it, or if you put multiple cars on your policy during its inception.
Preferred Payment Discount- This discount normally has tiers and refers to your method of making payments for your insurance. As an example: If you decide to pay the entirety of the premium from the get-go, you are given a discount. Moreso, setting up automatic payments from your bank account can offer you an EFT discount. Below is a table that represents the savings with these individual discounts.
|Paid In Full||EFT|
Profession Discount- This is a discount that has many different names. Whatever the name, it is a discount that is based solely on your profession. In many occupations, you will find that there are fewer claims made such as; physicians, police officers, and teachers. Insurance companies recognize this and want to return the savings to their insured. Normally, proof of your occupation is required, such as a photocopy of a degree.
Good Student Discount- If your grades, or the grades of your children, are good, you could qualify for a discount. The GPA is normally above 3.0 for this discount to take place, and they normally ask every policy period for a transcript.
In the event that your automobile is worth less than $4,000, you wouldn’t need to have collision or comprehensive coverage. The reason being, you would end up paying more for the coverage than the payout you receive if the car is totaled. There are online tools, such as NADA and KBB, that can help you determine your vehicle’s value.
However, if your vehicle is worth more, you might want to consider making your deductible higher. This could lower your premium respectively.
Use Your Coverage Only When It Is Necessary
Many companies will add a surcharge to the policy in the event that your coverage is used. While the surcharge varies, it can stay on your premium for up to 5 years. Here are some average increases after there has been an accident:
|Violation||6 Month Average Premium||Increase|
|One Comprehensive Claim||$765.00||$31.00|
If you aren’t sure if you should file a claim, make sure you have a full understanding of your policy. You also need to determine how much the rates would rise in your state due to an at-fault accident. Consider how much the premium will increase, as well as how much your deductible is. Make sure the value of the claim is greater than what you will be paying out of pocket. Otherwise, you will be losing money on a claim that you didn’t need to file. The value of the damage can be estimated by a local mechanic. You want to make sure the damage of the vehicle will be more extensive than the cost of having to make a claim.
Car Insurance Rate Comparison
The most effective way to find cheap car insurance for women is to do your research and ask around. Do online quotes to find the best possible rate for your car insurance.