Orlando Harmon
There are many factors that go into determining car insurance rates, including age, location, coverage level, and gender. While gender may not be the most significant factor, it can still impact rates, especially for younger drivers. In general, insurers charge higher rates to those who are more likely to be involved in accidents or make claims. Teenage boys tend to pay the most for car insurance, as they are the most likely to be involved in car accidents. For adult drivers, the gap closes, with men paying slightly more, around 1% on average. However, this varies by state, with women paying more in 37 states, and the difference becomes more pronounced as drivers age. Overall, it is essential to shop around and compare rates to find the most affordable car insurance, as rates can vary significantly between insurers.
| Characteristics | Values |
|---|---|
| Gender impact on insurance rates | In most states, gender impacts insurance rates, but only slightly. Men pay about 1% more than women for car insurance coverage. |
| Gender-neutral options | As of mid-2022, more than 20 states have gender-neutral options on driver's license forms. |
| States forbidding gender consideration | California, Hawaii, and six other states forbid insurance companies from considering gender when setting rates. |
| Age impact on insurance rates | Age is a significant factor, with younger drivers paying more than older adults. Teenage boys pay the most, followed by teenage girls. After age 25, the gender difference becomes insignificant, with women paying slightly less (1%) than men. |
| Risk factors | Men are generally riskier to insure due to higher rates of accidents, speeding, driving under influence, and not wearing seat belts. |
| Credit scores | Credit scores can impact insurance rates, with a difference of up to 114% between excellent and poor scores. Historically, men had higher credit scores, but now scores are nearly identical between genders. |
| Incident rates by state | In Massachusetts, female drivers had a higher incident rate of 66.4 per 1,000, compared to 48.5 for male drivers. Hawaii has the biggest gender gap in incident rates, with male drivers having 3.6 more incidents per 1,000. |
| Average annual premiums by state | In Michigan, both men and women pay the highest rates, averaging $3,814 annually. In Vermont, both genders pay the least, with women at $687 and men at $714. |
| Average annual premiums by gender | Nationally, male teen drivers (15-19) pay $4,755, while female teens pay $4,251. For adults, a 32-year-old man can expect to pay about $15 more per year than a woman. |
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What You'll Learn
Male teens pay more for insurance than females
Secondly, insurers consider male drivers, especially teens and young adults, to be higher-risk. This is because young men are statistically more likely to get into accidents and are more likely to engage in risky driving behaviors such as speeding, driving under the influence of alcohol, and not wearing seatbelts. For example, in 2019, 27% of fatal crashes involving 15 to 18-year-old teen drivers were speed-related, and 24% of drivers in the same age group who died in crashes had a blood alcohol concentration (BAC) of .01 or higher. As a result, male teens are considered more likely to get into accidents and file claims, leading to higher insurance rates.
The difference in insurance rates between genders is most pronounced during the teenage years, with male teens paying approximately 14% more for car insurance than their female counterparts. This gap narrows as drivers age, with male drivers between 20 and 24 paying 8% more, and the difference becoming negligible after the age of 25.
It is worth noting that some states, such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania, have outlawed the use of gender as a rating factor in insurance rates. In these states, insurers cannot consider gender when setting insurance premiums, and male and female teens will pay the same rates.
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Men are more likely to die in car accidents
While there are inconsistencies in the data, with some sources stating that men pay more for car insurance and others stating that women do, there is a consensus that men are more likely to die in car accidents. This is due to a variety of factors, including speeding, driving without a seatbelt, and driving under the influence of alcohol.
Firstly, men are more likely to speed. In fact, speeding has been a contributing factor in driver deaths for men more often than for women since 1982. In 2020, the National Highway Traffic Safety Administration (NHTSA) reported that 5.39 million male drivers were involved in crashes, compared to 3.72 million female drivers. The percentage of men involved in speed-related accidents was higher for men in all age groups, with drivers under the age of 20 having the highest speeding-involvement crash rate.
Secondly, men are more likely to drive without wearing a seatbelt. This was identified as a contributing factor in the higher number of fatal crashes among men by the Insurance Information Institute.
Thirdly, men are more likely to drive under the influence of alcohol. In 2022, alcohol-impaired drivers were involved in one-third of all fatal car crashes, and most of those drivers were men. There were three male drunk drivers involved in fatal crashes for every female drunk driver.
In addition to these risky driving practices, men also tend to drive more miles per year than women, increasing their likelihood of being involved in an accident. Men drive an average of 16,550 miles each year, while women drive an average of 10,142 miles. This means that women drive 30% less than men annually.
While men are more likely to die in car accidents, it is important to note that women are not necessarily poorer drivers. In fact, women are more likely to have driver's licenses than men, and there are more unlicensed men driving than women. Additionally, women are at greater risk in frontal and passenger-side collisions and are less likely to survive serious car accidents, especially when they are hit by men driving large trucks.
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Women pay less in most US states
Women pay less for car insurance than men in most US states. This is because men are riskier to insure. They typically drive more miles and are more likely to engage in risky driving behaviours like speeding, driving under the influence of alcohol, and not wearing seatbelts. According to the Insurance Institute for Highway Safety (IIHS), men died in car crashes at twice the rate of women in nearly every year from 1975 to 2019. In 2019, 71% of motor vehicle crash deaths were males.
While adult men and women pay about the same amount for car insurance, the gap changes as drivers get older. Teenage boys pay the most for car insurance, with a sample quote for a boy driver at $4,946 per year, or $328 more than a girl of the same age. The average teenage male driver pays approximately 14% more for car insurance than a teenage girl. This is because boys and young men are more likely to be involved in car accidents than other drivers. A LendingTree study found that Gen Zers, aged 18 to 26, had 49.07 incidents per 1,000 drivers, nearly double that of the second-highest group.
However, the cost difference among insurers is greater than the difference between men and women, which is why it's important to compare rates to find the cheapest option. Additionally, some states have outlawed gender as a rating factor, with more than 20 states offering gender-neutral options on driver's license forms. In these states, insurers cannot consider gender when setting rates and will not ask about it.
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Men drive more miles than women
There is a complex relationship between gender and insurance rates. While gender-based pricing is outlawed in some states, in others, it is a factor in determining insurance rates. Men and women pay roughly the same amount for car insurance, but the gap changes as drivers get older. Teenage boys pay the most for car insurance, with a quote for $4,946 per year, $328 more than a girl of the same age. From ages 20 to 24, male drivers pay 8% more than their female counterparts. After a driver's 25th birthday, the difference in insurance premiums between men and women is negligible. On average, women over 25 pay 1% less than men. Beyond the age of 60, rates for male drivers tend to be more expensive.
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Women pay more in 37 states
Despite women demonstrating a lower risk than male drivers, historically, they have often paid more for car insurance. In 2020, women were charged more than men in half of all states. However, in recent years, this has changed, with women now paying less in the majority of states.
In 37 states, women still pay more for auto insurance than men. Florida ranks second for both genders, with women paying an average of $2,687 and men paying $2,488. The high rate of uninsured drivers in Florida contributes to this, as insured drivers must cover the costs when uninsured drivers are involved in accidents. Nevada is third, with women paying $2,481 and men paying $2,371. In Michigan, both men and women pay the most in the country, with an average of $3,814 annually. This is due to the state's no-fault law, resulting in high insurance claim payouts.
Massachusetts has the biggest disparity in incident rates, with female drivers having 66.4 incidents per 1,000 drivers in 2023, while male drivers had 48.5 incidents, a difference of 17.9. In states where the discrepancy between male and female crash rates is noticeable, the gender with the higher crash rates can expect to pay more for insurance, assuming the practice of considering gender when setting rates is not banned. Hawaii, Arkansas, and Maine have the biggest gaps in incident rates per 1,000 drivers, with male drivers having more incidents.
The reason women tend to pay less overall for car insurance than men is that men are riskier to insure. Men typically drive more miles and are more likely to engage in risky driving behaviours like speeding, driving under the influence of alcohol, and not wearing seatbelts. From 1975 to 2019, men died in car crashes at twice the rate of women, according to an IIHS analysis. In 2019, 71% of motor vehicle crash deaths were males.
While gender is a factor in setting insurance rates in most states, some states have outlawed it. Six states prohibit the use of gender as a pricing factor, and more than 20 states have gender-neutral options on driver's license forms.
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Frequently asked questions
In most states, gender will impact car insurance rates, but only slightly. Men pay about 1% more than women for car insurance coverage. The difference is more pronounced among younger drivers.
Insurers charge more for people who are statistically more likely to be involved in an accident or make a claim on their policy. Boys and young men are more likely to get in car accidents than other drivers.
Shop around for an insurance company that doesn't consider gender when setting rates. Every car insurer sets rates differently, so it's important to compare rates to find the cheapest car insurance for you.
