Auto Insurance Rates Chicago- Sex Influence on Rates
In earlier articles we highlighted the effect of marital status and age on the overall insurance costs of products delivered to people, primarily those in the Chicago area. The author suggested that the Chicago area has some variances from the standard population when it comes to the sets of demographics statistics that are pertinent to the insurance field.
Sex in Life Insurance: There is enough national statistics & studies in the insurance literature which signifies that females live beyond males by about 7 years. Also, the mortality percentages among young males are higher than women. The result of these mortality differences is significant lower life insurance ‘costs’ for females. Notice that we used the expression ‘cost’ and not ‘premium’. In universal life and whole life policies, insurance companies charge additional premiums (not more cost) which is basically the same amount for males and females as a “saving” quality, not as cost of insurance. Consequently, the rate difference between females and males is more obvious in term insurance contracts.
There are no premium differences between males and females amongst the suburban population and the Chicago population regarding life insurance policies, or products that use mortality rates such as variable or fixed annuities.
Gender in Health Insurance: Once again there are considerable studies that indicate that morbidity percentages among females are higher than their males counterparts during the early stages of life. After that the percentages become comparable to men in mid age stages, eventually morbidity ratios start to go lower compared to men in the advanced stages of life. Morbidity ratio is identified as the percent of sick to healthy and balanced Individuals in the population. These disparities in the morbidity ratios are mirrored with the same relevance in the premiums charged by the insurance company from customers.
A lot of people are not aware that most notable insurance companies have imposed extra charges on the people of the City of Chicago for health insurance applications. City of Chicago health insurance prices are typically 10% to 25% more than their suburban equivalents. Insurance companies justify that the added charges are due to the more expensive cost of health care services in the City of Chicago.
Gender in Automobile Insurance: Influence of sex difference on insurance rates is more prominent in the auto insurance sector. Females pay less than men for the same products, around 25% to 40% less for ages less than 25 years, depending on the exact age. The difference starts to disappear upon age 25 years.
Chicago car insurance premiums for females are higher than their surrounding suburbs’ equivalents because of the fact that the Illinois automobile insurance rates are established by location.
Unisex Premiums in Insurance: A number of insurance companies disregard sex as a discriminating feature when dealing with group or business insurance (health, life or auto,) and instead they use Unisex Rates- same price for men or women. Some states including Massachusetts tried to apply certain decision about the use of unisex rates. In the opinion of the author, unisex rates may just push the cost of insurance up. While women pay more for certain insurance services, they pay smaller for others. It makes no sense to invest so much in eliminating the current quoting techniques and try to fabricate new ones and then have the consumers bear the price of this transition when there is no significant evidence that unisex pricing techniques will ever save us any money.
Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of Insurance Navy, a leader in providing more competitive Chicago car insurance quotes. Visit our website and get your SR22 Car insurance rates Illinois in 5 minutes or less. Insurance Navy represents major carriers such as AAA, Travelers, Progressive, Hartford, & many more.
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