It is no surprise that in the UK and in Ireland car insurance for young female drivers is more affordable than it is for male drivers of the same age. Car insurance companies set their premium rates on a number of factors including what kind of car you drive, where you live, how many miles you put on your car, but one of the demographic factors they take into consideration is gender. And the fact of the matter is that young female drivers are safer on a statistical basis than their young male counterparts.
This can make looking for inexpensive car insurance rates particularly challenging for parents of young male drivers but can also lull parents looking for cheap car insurance for young drivers to sleep when they are buying auto coverage for their teenage daughters. Many parents feel that because the rates are lower that they don't have to do the work of shopping around for the best car insurance quotes.
Shopping For Inexpensive Car Insurance
Whether you are looking for cheap car insurance for 17 year olds or for senior citizens, or looking for demographic splits in affordability, you cannot get past the task of doing the leg work of making a list of auto insurers, insurance features and coverage amounts, and calling each insurer for specific quotes including discounts and potential rate reductions.
Even when you are looking for auto coverage for people who naturally fit the demographic for low risk coverage you still have to make the calls. The reason for this is because of the way car insurers tend to set their rates. All the companies basically carry the same risk profile they simply offer very competitive rates for certain groups of people and less competitive rates for others. In the retail environment this is a tactic called a loss leader.
Car Insurance For Young Female Drivers
For instance if you are looking for cheap car insurance for women then most companies would give you a discounted rate because of the lower risk profile of the gender however by not offering a true price reduction comparable to the decrease in coverage risk they can deploy that price reduction to other demographics which may be more risky creating a loss leader.
Using this strategy a auto insurance company can look like they are giving amazing premium rates to risky groups of people as a way of marketing themselves as a very cheap car insurance company when in actuality the risky group may be operating at a loss compared to a highly profitable overly priced demographic.
In the auto insurance for young driver crowd a company might overprice car insurance for young female drivers while under pricing car insurance for young male drivers. For this reason it is always in your best interest to shop around for the best price. Even if you or your teen fall into a less risky profile you can always find the company offering insurance to your teenage daughter for less than another company; you just have to look around hard enough.