What many of us don't realize is that gender also influences our insurance premiums. Women in
New Mexicotypically pay more than men for coverage, but it’s not just about the way people drive.
Why do women pay more for car insurance in New Mexico?
New Mexico Political Report, a study by the Consumer Federation of America (CFA) found that some women pay more than men for car insurance in New Mexico. But it seems that credit score plays the biggest role in the rate differences.
The study found that a female with a perfect driving record and poor credit pays, on average, $621.20 more annually than a male with the same driving record but better credit. This didn’t apply to drivers aged 16 to 25.
Michael DeLong, a research and advocacy associate for CFA, said that this disparity can come down to the fact that women make less money than men on average. As a result, they may rely more on credit cards and not be able to make big purchases like a home which could help improve their credit score.
Are women riskier drivers?
This difference can’t just be explained away by the assumption that women are worse drivers. According to data collected by the
Insurance Institute for Highway Safety(IIHS), men are far more likely to be involved in a fatal accident than women drivers.
The IIHS reported that in 2019, 71% of all fatal
car collisionsinvolved men, while women were only involved in 29% of the accidents.
Your credit history has a lot bigger impact on your insurance premiums than you might think. Some states are working to ban the use of credit scores to determine insurance rates, which can disproportionately impact lower-income groups.
How to lower your car insurance rates
There are some things you can do to help lower your monthly insurance premium. If your state allows insurance companies to perform credit checks, it’s a good idea to try to improve your credit score. The better your overall credit rating is, the lower your car insurance.
If you’re shopping for a new vehicle, you might want to find one that’s equipped with better safety features. Newer cars with improved safety technology are far less likely to be involved in a fatal accident. This means a decreased risk of claims, which in turn makes insurance companies more likely to lower your premiums.
You can use the
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