NLIC.org

Raymond Said:

Why is there a difference in policy costs for female and male drivers across the board?

We Answered:

It depends on what state you live in.

Some states, do NOT allow different rates for men and women, whether it's life insurance, auto insurance, or health insurance.

Other states do - because depending on the type of insurance, claim payouts are higher for one gender than the other. Example: women live longer than men in general, so states that allow gender differentiation, women pay less for life insurance. States that don't, women pay the same rate as the men, all other things considered.

Women have more health insurance claims, both because they live longer, and because they give birth, 97% of the time in a hospital, and almost 50% of the time, via c section, a major surgery.

Women actually have more auto accidents then men, but they tend towards fewer injuries and lesser damages. Men tend to have the more spectacular crashes, totalling out more cars, killing more people.

Bottom line - it's all about claims. When gender is shown to predict more losses for one type, like life or car insurance, the rates will reflect that. When there's no difference, like homeowners insurance, the rates aren't different.

Hugh Said:

CALCULATING INSURANCE PREMIUM MATH HELP DESPERATE FOR HELP!?

We Answered:

2.1% * $110000 = $2310