Reader’s Question:

Why is it cheaper to have our car insured under my wife’s name? She’ll be the primary driver because we’ve been told female auto insurance is cheaper.

Matthew

Waterbury, CT

Although it is certain that many men out there would protest this next bit of information, the truth is women have been found statistically to be safer drivers. Fast and furious, men can be aggressive on the road. Women as drivers then are not necessarily better but more cautious, broadly speaking. It has been found that they get into fewer accidents. Not only that, women are less likely to drive extravagant cars. Women in general see cars for its utility. Men in general see cars as toys. Men –not women– fancy driving around in sports cars, which is costly to repair and costly to insure.

Of course, this alone does not dictate how much you would be charged for monthly premium. Many factors in fact come into play. For instance, if the car were garaged in an area with many recorded cases of auto theft and vandalism, the premium would be higher. If the auto insurance policy holder had poor driving records and had made several claims in the past, it would go up too. So it does not mean that all female drivers are charged less for auto insurance. Still, all things being equal, female auto insurance is cheaper. What it all comes down to, Matthew, is risk.