Insurance Costs For Teen Female Drivers: What's The Average?

Car insurance for 18-year-olds can be expensive, with 18-year-old drivers paying the highest premiums out of all age groups. This is because insurers consider young drivers to be less experienced and more prone to accidents, categorizing them as high-risk. The average cost of car insurance for an 18-year-old female driver is $508 per month for full coverage, while male drivers pay 9-10% more on average. However, the cost of insurance varies depending on location, with Hawaii being the cheapest state at $131 per month and Rhode Island the most expensive at $940.

Male drivers pay more

Male drivers, especially those under the age of 25, are involved in more auto accidents than female drivers. This is the primary reason why insurance is higher for males. Men in this age range are also more likely to drink and drive, and those who do are more likely to be involved in fatal crashes. They also tend to drive faster, are less likely to wear seat belts, and are more likely to drive with an excessive number of passengers. As a result, insurers often view male drivers as higher risk, especially in the teen and young adult age brackets.

Historical data shows that men, particularly young men, tend to be involved in more accidents, drive more aggressively, and file more costly claims than women. Crashes involving male drivers are also more likely to be severe. For nearly every year from 1975 to 2022, the number of male crash deaths was more than twice the number of female crash deaths. This data is reflected in insurance rates, with 18-year-old males paying on average $5,064 compared to $4,483 for females. The difference in premiums between genders narrows as drivers age, with males paying only 1% more on average per year for full coverage than females at age 50.

Insurance companies use a variety of factors to determine how likely a driver is to file a claim, and gender is one of them, at least in states where gender can be considered. Insurers consider gender in combination with other risk factors, such as the type of car and years of driving experience. When states prohibit rating factors like gender, the extra cost does not disappear but is distributed differently. For example, in California, eliminating gender as a factor would give young male drivers with less experience a break on their insurance costs, while young female drivers may end up paying more.

While gender is a significant factor in insurance rates, it is not the only one. Age, marital status, and state requirements also play a role. Additionally, the type of vehicle can impact insurance rates, with red vehicles, sports utility vehicles, and specialty vehicles costing more to insure. Taking a driver's education course and maintaining good grades can help reduce insurance rates for young drivers.

Females are safer drivers

The average cost of car insurance for an 18-year-old female driver is $4,483, while their male counterparts pay $5,064. This is because insurance companies consider young males to be statistically more likely to take unsafe driving risks than young females. As drivers get older, the difference in premium between genders narrows.

Several studies and reports have found that women are safer drivers than men. The Insurance Information Institute reports that women are involved in fewer accidents than men, and their accidents are less likely to be DUI accidents, indicating better judgment and fewer risks taken while driving. A study by the Insurance Institute for Highway Safety found that in 2009, around 11,900 male drivers died in US traffic accidents, compared to just under 4,900 female drivers. This translates to a death rate of 2.5 per 100 million miles traveled for men, compared to 1.7 deaths for women.

Social scientists and traffic safety experts attribute the higher number of crashes among male drivers to their greater propensity for aggression and risk-taking, fueled by testosterone. Men are more likely to drink and take drugs while driving, speed, and avoid wearing seat belts. These behaviors contribute to a higher risk of accidents and serious injuries.

While gender stereotypes may play a role in perceptions of driving ability, the statistics support the notion that females are generally safer drivers than males. The higher accident and death rates among male drivers are difficult to ignore, and insurance companies take these factors into account when calculating premiums.

Age affects insurance rates

Age is one of the primary factors influencing insurance premium rates. While this is true for life insurance, it is also the case for car insurance, where younger drivers, especially those under the age of 25, are charged more due to their lack of experience and higher statistical risk of accidents. The gap between insurance premiums for men and women under 20 is an average of 14%, with young men between the ages of 16 and 19 being more than twice as likely to cause a fatal car accident than females of the same age. The most significant difference in premiums by gender occurs at age 18, with 18-year-old males costing 9% less to insure than their female counterparts. As drivers age, the difference in premiums narrows, with males at age 50 paying only 1% more on average per year for full coverage than 50-year-old females.

In the context of car insurance, age is a significant rating factor that impacts drivers under 25 and over 70 the most. These higher rates reflect the increased risk of accidents among these age groups. In addition to age, other factors that influence car insurance premiums include gender, driving record, credit score, claim history, and the types of coverage chosen. While age is a contributing factor in most states, it is not permitted as a rating factor in Hawaii and Massachusetts.

Life insurance premiums also tend to increase with age, as older individuals are more likely to become ill or pass away while under coverage. The premium amount typically increases by about 8% to 10% for every year of age, and this can be as high as 12% annually for those over 50. Additionally, age can affect whether a person qualifies for life insurance coverage, with qualifying medical exams becoming more stringent as one gets older.

Health insurance costs are also impacted by age, with older individuals typically paying more due to increased medical needs. The average cost of health insurance for an 18-year-old is $444 per month, while it increases to $498 per month for a 26-year-old. However, Washington, D.C., is an exception, where age has a less pronounced impact on health insurance costs compared to other states.

State laws vary

State laws also vary on whether a teen with a learner's permit must be added to a parent's insurance policy. Some insurance companies allow parents to list a teen with a learner's permit on their policy at no extra charge until the teen becomes a fully licensed driver. However, other companies require parents to add a teen and start paying premiums once they receive their permit.

The amount of mandatory minimum insurance coverage for bodily injury and property liability also differs by state. For example, California prohibits the use of gender in car insurance ratings.

Additionally, state laws vary on the discounts offered by car insurance companies. For example, if a child goes to college more than 100 miles away and does not take a car, some insurance companies will offer a discount of 5% to 35%.

Finally, while the average car insurance cost per year by age and state varies, not all states permit age as a rating factor.

Experience lowers rates

The average cost of car insurance for an 18-year-old female driver is $4,483. This is significantly higher than the average cost of insurance for older drivers, as young and inexperienced drivers are more likely to be involved in fatal accidents.

Insurance companies view young, inexperienced drivers as high-risk clients. This is because drivers with little experience behind the wheel are more likely to be involved in accidents and file insurance claims. As a result, insurance companies will charge higher rates to drivers in their twenties, with rates decreasing as the driver ages and gains more experience.

The Insurance Information Institute reports that older drivers are involved in fewer accidents than younger drivers. As such, insurance providers will reward middle-aged drivers with lower premiums than teenagers and young drivers. However, once drivers reach their senior years, rates will increase again due to health problems and slower reaction times.

In addition to age and experience level, insurance companies will also consider a driver's accident history when determining insurance rates. Drivers who have been accident-free for over three years may be eligible for a discount on their insurance.

To lower insurance rates, drivers can also improve their credit score, choose a higher deductible, and compare rates from multiple insurance providers.

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