Which Gender Pays More For Car Insurance

Is There A Gender Gap In Car Insurance Rates

Our analysis shows that female drivers tend to pay less than male drivers.

As drivers age and get more driving experience, the gender gap in rates narrows to a negligible amount. In some age groups, women pay slightly more than men, but around age 35 average rates are the same.

As drivers get older, female drivers start paying less again.

One of the reasons men tend to pay more than women for car insurance is because men are riskier to insure. Men typically drive more miles than women and are more likely to practice risky driving behaviors like speeding, driving while under the influence of alcohol, and not wearing safety belts, according to the Insurance Institute for Highway Safety .

In nearly every year from 1975 to 2019, men died in car crashes twice as much as females, according to an IIHS analysis of the U.S. Department of Transportations Fatality Analysis Reporting System. In 2019, 71% of all motor vehicle crash deaths were males.

Seven states prohibit the use of gender as a pricing factor in auto insurance:

• California
• Pennsylvania

Maintain A Clean Driving Record

Having a clean driving record is your best bet to lower rates. New drivers, young drivers, and drivers with multiple accidents or a drunk driving conviction are more likely to pay higher rates. Your monthly rates will likely drop after three to five years of no speeding tickets, exceeding speed limits, fatal accidents, car crashes, suspended drivers licenses, DUIs, and similar incidences.

Why Do Insurers Use Gender When Devising Auto Insurance Rates

Insurance is based on risk. Men drive more than women. Theyre more likely to get in accidents, get tickets, and get arrested for DUI. Men are also more likely to drive a car thats more costly to insure.

Car insurance companies use many factors when creating rates:

• Type of vehicle

Insurers dont weigh them all the same. Underwriting departments vary on how much importance they put on each.

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Who Pays The Most For Car Insurance: Men Or Women

The higher premium varies by a drivers age. But it turns out that over a lifetime of driving, men end up paying about 3% more than women.

More to the story

The average car insurance rates dont tell the whole story about how much you might pay based on your gender.For example, median rates for men ages 31 to 35 were only $18 higher than for women, at $1,870 versus $1,898, respectively. And the absolute cheapest rate for men at $601 was only $80 more than the $681 for women.

How we got these rates

We pulled data from Quadrant for 47 car insurance companies and compared hundreds of thousands of car insurance rates using the same driver profile:

• All New York ZIP codes
• Currently insured
• Good credit

How Gender Affects Your Car Insurance Rates

On top of your age, many companies consider your gender in setting your car insurance price. Our analysis found that starting at age 20, men pay higher average insurance rates. By age 30, women and men pay almost equal rates, but the price gap never truly closes. Across all age groups, men pay more than women on average.

In this case, theres some data to back up charging young men more. A study from the Insurance Institute for Highway Safety, or IIHS, found male drivers of all ages are 63% more likely than female drivers to be involved in a fatal crash

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Who Pays More For Car Insurance Men Or Women

For the most part, men and women pay about the same amount for car insurance. For typical adult drivers, we found only a slight difference between the cost of insurance between men and women.

We found a price difference of less than 1% between men and women in their 30s.

It’s worth noting that different insurers we looked at factored in gender slightly differently. Geico charged women slightly more, while Progressive charged them slightly less. Allstate and State Farm both kept their rates exactly the same, regardless of gender.

The cost difference among insurers was substantially greater than the difference between men and women which is why it’s so important to compare rates to find the cheapest car insurance for you.

Find Cheap Auto Insurance Quotes in Your Area

Why Gender Affects Car Insurance Rates

Young drivers are riskier to insure than older, more experienced drivers, and the same is true for young males compared to young females. According to the CDC, males aged 1619 are almost twice as likely to be killed in a car accident as females of the same age. As drivers gain more experience, the gap between car insurance costs narrows until only a few dollars separate the genders. At this point, other factors overshadow the importance of age and gender in car insurance pricing, including driving history and location.

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Car Insurance Rates For Women

Two recent studies have confirmed that middle-aged women paying more for car insurance is common throughout the country. In 2017, the Consumer Federation of America found that in 58% of the instances in which companies used gender to adjust car insurance rates, 40- and 60-year-old women faced higher premiums and were penalized more often. They gathered over 100 quotes from some of the biggest auto insurance carriers in the nation.

More recently, in 2021, Yahoo! Finance reported that women pay slightly more for car insurance on average than men overall, but they pay noticeably more in 21 states and Washington, D.C.

To be sure youre getting the most affordable rate you can, its crucial to compare quotes from different providers when shopping for car insurance. Its the best and only way to see how different companies can offer the coverage you need at a price that works for you.

At Clovered, we live to make this easy. Our goal is to simplify the insurance process and get you covered sufficiently with our online quote tool.

Rethink your auto insurance premium with a free quote from the nation’s top companies.

How Can I Reduce My Car Insurance Premiums

Regardless of your gender, there are several things you can to do keep your car insurance premiums affordable. Here are some easy things you can do to find affordable car insurance premiums.

There are so many factors that affect the overall cost of your car insurance policy, including your gender and other demographic information. Knowing how insurance premiums are calculated can help you be a smarter shopper and choose the right car insurance for your needs. Although gender does have some effect on your premiums, the overall price is a combined representation of the financial risk you present to your insurance company.

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Gender And Auto Insurance Costs

Gender is often one of the factors insurers use to determine auto insurance rates. Women sometimes pay less than men because women tend to have fewer accidents overall, as well as fewer driving under the influence accidents and fewer serious accidents. The difference in premiums charged to men and women varies by insurer and by age. Women from age 16 to 24 pay around $500 less per year for car insurance compared to men. Auto insurers tend to charge women that are 55 and older less than men.

The following seven states dont allow insurers to base premiums on gender:

• California
• North Carolina
• Pennsylvania

The Zebra, an insurance comparison site, found that men and women pay the same across all age brackets. However, there is a disparity among younger drivers. Men who are younger than 20 years old pay 14% more than women in the same age bracket.

And what happened to auto insurance rates in the European Union after the 2012 nondiscrimination law? The rate discrepancy between British men and women drivers went way up. Men used to pay £27 more than women for a car insurance policy by 2017, they were paying £101 more. It seems that other factors insurers used to set premiums, such as occupation, had a major impact.

Which Gender Pays More For Auto Insurance

Car insurance rates depend on a wide variety of factors. To determine your premium prices, car insurance companies will look at your overall profile to determine how much of a risk you are. They look at things like your vehicle and your driving history, but they also look at your general demographics. Gender is one factor that can play into the total cost of your car insurance, and you may be wondering which gender actually pays more for their coverage. In this article, well look at how gender affects the overall cost of car insurance.

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Why Do Men And Women Pay Different Car Insurance Rates

Since they show a better reputation for safe driving than men, women tend to pay cheaper rates when they’re younger.At age 25, both genders see fairly equal rates due to maturity and more experience behind the wheel.

Then why do women see higher rates than men when they’re older? There is currently no clear answer. In 2017, the Consumer Federation of America found that women between the ages of 40 and 60 paid more for minimum liability coverage than men with similar histories. Looking at the underlying factors used to calculate claim risk level, there doesn’t seem to be a clear and constant risk factor in women drivers’ histories to reveal a reason for the cost difference.

Women may also pay significantly more than men depending on where they live. Our analysts found 31 states where women pay more than men, 15 where men pay more than women and four where men and women pay the same amount.

We also found that when women pay more, they tend to pay substantially more. Women pay over $100 more than men in four states, while the most men pay more than women is $64.

Is Auto Insurance More Expensive For Women Or Men

By Altra Insurance 9 am on March 20, 2020

In the great debate about who makes the best drivers, it always seems someone will bring up the fact that males tend to pay more for their car insurance than females do. Most males do in fact pay more than females at certain stages during their lives, and the reason for this essentially comes down to males being viewed as more likely to be involved in accidents. You should also know that this risk goes down over time, and there are many factors that influence who ends up paying more.

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How Rates Differ Before The Age Of 25

Young drivers are considered high risks for car insurance purposes because their inexperience means they may not be able to anticipate accidents as easily as older adults can. Most new drivers pay higher rates in general, but young males pay about 14 percent more than younger females on average. This is because statistics show young males have more accidents than young females. Males under the age of 25 are also viewed as more likely to take risks, such as speeding or running a red light.

Letting Your Insurer Know

Tell your insurance company about the accident as soon as you can, even if you dont want to make a claim. Your policy booklet should have information on how to contact your insurer or have a look on their website.

If possible, have your policy number and any details of the incident handy when you contact them. If you want to make a claim, your insurer will be able to:

• Register your claim and give you a claim number
• Talk you through the process, including confirming what youre covered for
• Let you know what the next steps are and get the ball rolling for you

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Adding Male Versus Female Teens To Your Car Insurance Policy

Variances in rate between genders are most significantly observed when it comes to adding a teen driver to your policy. Gender-specific data surrounding accidents, speeding and unsafe driving are amplified when age is a factor.

According to the Center for Disease Control and Prevention , teens pose a risk while driving due to the following factors:

• Inexperience
• Alcohol use
• Night time/weekend driving

However, the most important reason rates are higher for male teens is that they are twice as likely to die in a car crash as teenage girls.

In 2017, the motor vehicle death rate for male drivers aged 16-19 was over two times higher than the death rate for female drivers of the same age.

Centers for Disease Control and Prevention

Increased risk factors associated with teen drivers, especially males, lead to significant differences in rates as evident in the chart below. For example, in Mississippi, teenage boys cost 37% more for auto insurance than the average premium for that state. The difference in Maine is less, but still significant, at 29% more for the same type of policy. A complete list of rates by state is available on our teen driver page.

Ways To Keep Insurance Rates Lower

If youre a younger male, the best way to get a lower rate is to practice safe driving habits. Taking drivers training courses can help you score discounts, and every driver needs to avoid getting tickets and having accidents. Your insurance company may also offer lower rates if you bundle other types of policies together. Ask about discounts to make sure youre getting the best rates for your circumstances.

Drivers who are searching for affordable, reliable auto insurance should reach out to the friendly agents at Altra Insurance Services. In addition to auto coverage, we offer a variety of insurance policies, including motorcycle, business, and homeowners insurance. Residents can call one of our knowledgeable team members today at 619-474-6666 for a free quote.

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States With The Most Expensive Car Insurance For Women

Not surprisingly, Louisiana has the highest annual full coverage car insurance premium for women, at $2,789. This is because the state already has the highest average annual full coverage insurance cost. Michigan, Florida, New York, and Nevada round out the list of states with the most expensive annual full coverage car insurance premiums for women.

This is similar to the list of states with the most expensive average annual full coverage car insurance premiums, but the average rates are a little different when only women are considered. Michigan doesn’t let gender be used as a rating factor for car insurance premiums, but the state is already the fourth most expensive for full coverage car insurance.

How Does Car Insurance Work

There are different kinds of insurance more about these later but they all work on the same basic principle. You pay an insurer either monthly or one-off annual payment for a policy. Then, if youre in an accident or your car is stolen, you can claim against the policy and the insurer will pay some of the costs for putting things right.

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What Happens If My Car Insurance Is Invalidated

It could cost you a lot of money and get you into trouble with the law. For starters, your insurer could charge you the correct price in a lump sum and refuse to pay your claim. It also means you were uninsured when the incident happened, and you could face prosecution for fraud or driving without insurance.

If any of these things happen, you’ll need to declare it on any future car insurance applications. This will make it harder and more expensive to find cover. You could even end up being blacklisted by every mainstream insurer.

Average Annual Premium By Gender In The 10 Largest States

Note: Rates are representative of premiums for a 45-year-old driver with a clean driving record and good credit. Actual rates will vary.

Men pay more for car insurance because they are statistically more likely to engage in risky driving behavior, like speeding or not wearing a seatbelt. Additionally, men have a higher likelihood of being in a car accident.

Do men pay more for car insurance than women?

Yes, men pay an average of 6% more for car insurance than women. For example, a policy that fulfills state minimum coverage requirements for a 45-year-old woman costs $669 per year, while the same policy for a 45-year-old man costs $716. However, rates vary by individual driver and by age group. Male teen drivers typically pay over 10% more than female teens, while some older female drivers will pay more than their male counterparts.read full answer

In general, men pay more for car insurance than women in states where it is permitted because they are more likely to cost insurers money. Hawaii, California, Massachusetts, Michigan, Montana, Pennsylvania, and North Carolina have banned the use of gender in determining car insurance premiums.

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