Does Every Accident Increase Car Insurance Rates Equally for Male and Female?

Does Every Accident Increase Car Insurance Rates Equally for Male and Female?

There are a lot of factors to consider in order for us to answer this question. These factors include the car owner’s driver’s history, the kind of car insurance coverage, the auto insurance provider; type of accident, the number of injured people, and the number of vehicles involved and if there was a damaged personal property. There are some companies that render a good insurance program referred as accident forgiveness program.

In this type of auto insurance program, the insurance premiums will not go up in case you’ll be involved in an accident. Nevertheless, it is important for you to understand that accident forgiveness insurance program has its twist and turns. It means that not all accidents that you’ll meet will be exculpated by your auto insurance provider.

Driving History

During the application process for auto insurance, the car insurance company will ask for the driving history of the car owner. They do this because the driving records serve as one of the major factors to determine the cost of the monthly premium of the car insurance policy. The driving record will tell whether you’ve been involved into accidents already or if you have caused an accident.

If you’re guilty that you’ve been involved in accidents for multiple times, then set expectations that you will pay high car insurance rate. People who have very bad driving history are considered as high-risk motorists. For auto insurance agencies, it is costly to insure high-risk type of drivers.

Accident Forgiveness

The accident forgiveness type of insurance policy is one of the newest innovations in the world of car insurance. This is a new marketing strategy of car insurance companies. Auto insurance companies use this to gain new customers and to retain the old ones as well. The main purpose of this is in order for the insurance premiums not to increase in case the policyholder will be caught up in an accident. It is commonly being offered to parents of teenagers.

It depends on the car insurance company whether the accident forgiveness coverage will serve as a freebie or if there will be an allotted price for it. Because of the increased rates of staged accidents, majority of the car insurance companies today are left with no choice but to make the accident forgiveness coverage as an add-on which can truly increase the auto insurance rates.

The staged accidents are fraudulent acts of those car owners who want to make a claim. They pretend that they were involved in an accident so that their auto insurance provider will give them some sort of compensation.

Just like in any aspects of car insurance, it is also relevant for you to compare the quotes for accident forgiveness program.

Companies have different ways in executing this type of car insurance program

For example, Unique insurance company requires that the person should be their valued customer for a certain period of time and should have splendid driving history.

Accident forgiveness program seems to benefit car owners like you. But you can never deny the fact that the accidents that you’ve been involved to or you caused remains in your driving history and you are considered as a high-risk driver.

Do males or females pay more for the cost of car insurance?

In majority of cases, males have a higher tendency to pay high amounts for car insurance policy compared to females. The main and most obvious reason is because of the fact that males are considered to be high risk drivers than females. This information is supported with the yearly statistics.

There are several factors to be considered in order to ascertain the amount of money that should be allotted for the monthly contributions. One of these factors is how risky a driver is. Reliable studies show that men tend to pay higher monthly premiums than women. It is because women are considered as safer drivers and safe driver means less chance of accidents. But this is not always the case; there are still some women drivers who are not safe enough to drive. In that case, that person will lose her chance to enjoy low down payment car insurance and also, companies do not offer them the accident forgiveness program.

Car Insurance Polices Application

During the application for car insurance policies, car owners will be asked with some questions. These questions are relevant to ascertain if the car owner is eligible to have low car insurance rates or not. These questions are used by car insurance companies in order for them to determine how a person uses his/her car and other important factors that might affect the auto insurance rates. In other words, car insurance providers will do a background check on their potential consumers; among their criteria is the credit history as well as the driving records of the driver.

The rate of the auto insurance policy depends on certain factors such as the year and make of the car as well as its model. It will also depend on how often the driver uses his /her vehicle and the number of miles they take when he/she drives. Aside from that, car insurance companies also consider if there are any safety devices or anti-theft gadgets that were installed in the car, the zip code of the car owners place and also where the car will be stored if not in use.

Lowering the Auto Insurance Rates

If there is one factor that plays a very significant role in lowering the auto insurance rates that would be the capability of the driver to drive safely. Therefore, the driving record is always needed by auto insurance providers. If a person has a lot of history of being involved in mishaps or too many traffic violations such as acquiring speeding tickets, that person will definitely pay high mount of monthly premiums, even though they’ll pay high for their deductibles.

It is true that car insurance companies don’t just simply consider the gender of the car owners. The usage of statistics and studies are rampant to determine the cost of insurance rates. Because of that, car insurance providers were able to ascertain that males are more risky. They are more prone to be involve in accidents, in those cases, the companies do not offer accident forgiveness. thus, they have to be stricter if the car insurance applicants are males.

As shown in the studies, there are a high percentage of men with lots of speeding tickets, uses luxury or sports cars, commit loads of traffic violations and make more expensive car insurance claims.

In order for men as well as women, to enjoy the low car insurance rates, what they can do is to present very good driving history, credit records and all evidences that can prove that they are responsible drivers.