We have all heard those crazy insurance myths at one time or another, such as you pay more for insurance if you drive a red car.
Yes, that is actually a myth
Insurance company’s don’t care, nor do they even know what the color of your car is.
But, one frequently talked about myth is actually true.
Whose Insurance is higher
Another common claim is that there are different auto insurance rates for male and female drivers.
This is actually a fact.
Male insurance rates are higher than female insurance rates.
Now before you get angry (if you are a male reading this), let me tell you why?
Insurance carriers develop rates using an actuary.
An actuary is a person who compiles and analyzes statistics, and then uses them to calculate insurance risks and premiums.
Their job is to compile all of the information contained within past studies, as well as the total payments or payout history of all automobile claims to develop rates.
The figures calculated give the actuary a rate based on the characteristics of an individual driver. These also determine, the type of vehicles that are most expensive, territories you live in, and hundreds of other characteristics used to determine auto insurance rates.
These insurance studies have shown that male drivers are more likely to be involved in an automobile accident and the ones that are, are more severe with larger payouts.
In the insurance world, higher probability equals an increase in insurance premiums (i.e. higher rates).
It is impossible to try and figure out why rates are the way they are. As I mentioned there are hundreds of factors that go into play.
The only solution is using an independent insurance agent who has access to many insurance carries and can shop your rates for you.
If you don’t have a relationship with an agent or want a review of your insurance?
Click below to learn more about how to proceed.