What Age Does Car Insurance Goes Down For Males?
What age does car insurance go down for males? The age you were first licensed to drive will determine how much your insurance is. There are three exceptions to this rule. Males over 25 years old with a clean record will typically get lower rates than males who have traffic violations or DUIs in their past. Also, drivers younger than 25 years old with clean records are generally considered “high risk” and will therefore pay more for their coverage.
Males who are young at age and who don’t have a record of traffic safety violations or DUIs will usually pay the same or less for car insurance than males who are older and have been involved in a crash. Drivers younger than 25 years old will typically be on the high end of the age spectrum for rates, but this average rate doesn’t reflect the full range of what male drivers pay. Male drivers on the average age bracket will pay anywhere from four times as much as a younger driver to six times as much. This difference in price is due in large part to gender. Young male drivers on the road today pay more for car insurance than young male drivers.
To determine what age does car insurance go down for males, you must look at what age group the average age of the drivers in your home state falls into. Every insurer has their own minimum age requirement for their drivers. Most insurers will also have a list of acceptable age groups based upon which they will accept an application. The minimum age requirements vary from insurer to insurer, but it is safe to say that most insurers will choose to accept a driver who is at least twenty-one years of age as the youngest possible candidate for an auto insurance policy.
Once you find out what the minimum age is for what age groups the auto insurance companies will accept, the next step is to determine what factors influence those premiums. Gender is one of the more important factors. Men represent fifty percent of the auto insurance market and they represent fifty-seven percent of those clients who are accepted for an annual policy. Because men are statistically more likely to be involved in car accidents, they are also charged higher rates. Insurance companies base their premiums on statistical assessments of risk. They evaluate the statistical probability of loss based on the age, gender, and driving record of an individual client.
Age is not the only determining factor. Female drivers make up forty percent of the auto insurance market but account for thirty-eight percent of clients who are approved for an annual policy. Factors like marital status are not considered when analyzing rates. For example, if a twenty one-year-old man married a thirty three-year-old woman, the coverage premiums would skyrocket. Because married people are more likely to remain married, they represent less of a statistical risk and will consequently drive less.
Ethnicity may be another element used by insurers. While it would seem logical that younger, more inexperienced drivers should be expected to pay more for their policies, the opposite is true. Younger, inexperienced drivers account for only fifteen percent of drivers but they represent about forty percent of all clients given an annual policy. In contrast, clients thirty-five years old and older represent fifty percent of all policyholders. Based on these statistics, it becomes clear that drivers older than 25-years-old have no automatic decreases in car insurance premiums.
Race and gender are also factors used by insurers. Younger drivers, especially male drivers, are targeted by insurers because they are statistically more likely to have an accident. The reasons for this are complex and probably have more to do with the fast way young drivers drive than they do with their age. While it may be unfair to assume that young male drivers are reckless, statistically they are much more likely to make a fatal or serious traffic mistake than are women.
Gender is also a factor. Men represent fifty percent of all policyholders yet women represent fifty percent of all accidents. Statistics lends weight to the belief that men’s greater chance of having an accident is due to them having to drive faster, having a bad driving record and having a higher annual deductible. Men’s rates are also higher than women’s because they are more apt to buy a more expensive car with a high annual deductible. All things considered, it appears that age is not a major factor in what age does car insurance go down for males.