Want to save on car insurance? Better put a ring on it.
According to a recent study, a married 20-year-old pays 21 percent less on car insurance than a single 20-year-old with the same policy. The study also revealed that at age 25, the average marriage savings is down to seven percent and falls to around two percent at age 30 and beyond. Interestingly enough, Hawaii is the only state in the U.S. where insurance companies are not allowed to factor marital status into their rate calculations.
As for differences when it comes to gender, there’s no equality here. A 20-year-old man pays on average 22 percent more than a 20-year-old woman for the same coverage, but the gap does narrow to just three percent at age 25. Average premiums are actually less for men between the age of 30 to 55, but after 55 women pay slightly less than men. There are three states that prohibit insurance companies to factor gender into their rate calculations: Hawaii, Massachusetts and North Carolina.
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Looking at age, car insurance costs decrease every year until age 60. The study also found that the sharpest drop comes between age 20 to age 20, when rates decrease as much as 41 percent. From 25 to 60, expect insurance rates to drop another 17 percent. Senior citizens don’t get much of a penalty as 75-year-old drivers pay 17 percent more than 60-year-olds on average, but those premiums are still 43 percent less than 20-year-olds. Again, Hawaii is the only state where insurance companies aren’t allowed to take age into account in their rate calculations. In the state of California, age cannot be explicitly included but years of driving experience can be.