The Gender Auto Insurance Gap: Exploring The Differences

Men and women tend to pay different amounts for car insurance. While men are statistically more likely to get into accidents, women can pay more for car insurance depending on their age and location. In most states, men pay more for car insurance overall, with male drivers paying significantly more during their teenage years and early adulthood. However, in a growing number of states, women are paying more for car insurance than men.

Men pay more for auto insurance than women in most states

According to a study by Insurance.com, female drivers between the ages of 16 and 24 pay, on average, $500 to $800 less per year for car insurance compared to their male counterparts. This difference in insurance costs is due to the higher risk associated with male drivers, as reflected in crash and claims histories. The gap in insurance costs between men and women narrows as they get older, with rates becoming more comparable around the age of 30.

However, it is important to note that the impact of gender on insurance rates varies across different states. As of 2024, six states (California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania) have banned the use of gender in determining insurance rates. In these states, insurance companies must use other factors, such as age, driving experience, and vehicle type, to set their rates.

While gender plays a significant role in auto insurance rates, it is not the only factor considered by insurance companies. Other factors, such as age, location, insurance provider, and driving record, also influence the cost of insurance premiums. By comparing quotes from multiple insurance companies and focusing on maintaining a good driving record, individuals can work towards obtaining the best auto insurance rates possible.

Male drivers are more likely to get into accidents

Men are also more likely to drive under the influence of alcohol. In 2017, alcohol-impaired drivers were involved in a third of all fatal car crashes, and the vast majority of those drivers were men. There were four male alcohol-impaired drivers for every female alcohol-impaired driver.

Speeding is another factor that contributes to accidents, and it is more prevalent among male drivers. In 2017, speeding was a factor in 28% of male driver deaths, compared to 18% for female drivers.

The higher accident rate among men is reflected in insurance rates. Men pay more for car insurance, especially during their teenage and young adult years. The cost difference is significant, with male drivers paying hundreds of dollars more per year than female drivers. This difference usually evens out by the age of 25 or 30, but women's rates may increase slightly again by age 35.

While gender is a factor in insurance rates, other considerations also come into play, such as age, location, insurance provider, and driving record. Teenagers, regardless of gender, typically face higher insurance rates due to their lack of driving experience. As drivers age, rates generally decrease until they reach their mid-70s. Seniors are more expensive to insure due to increased accident risks and more severe injuries.

To mitigate the impact of gender on insurance rates, some states have banned the use of gender as a factor in setting insurance rates. These states include California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. In these states, insurance companies must use other factors to set their rates, resulting in a more level playing field for male and female drivers.

Women pay more for auto insurance in 25 states

In the United States, gender plays a role in determining auto insurance rates in most states. While men are statistically more likely to get into accidents and exhibit riskier driving behaviour, women pay more for auto insurance in several states. In fact, an analysis by The Zebra revealed that women pay more for car insurance in 25 states, with the number of such states doubling in just two years.

The discrepancy in insurance rates between men and women has sparked controversy, with consumer advocates arguing for the elimination of gender-based pricing. The rationale behind this is that if gender were strongly correlated with the likelihood of filing an insurance claim, one would expect to see more consistent rates across different insurers and locations. The varying rates, they argue, are unfair, and gender should not be a factor in determining insurance premiums.

The Zebra's analysis found that women's average annual car insurance premiums were about $10 higher than men's in 2018. This disparity has grown in many states, with Nevada, for example, seeing a jump from $14 in 2016 to $121 in 2018. While the exact reasons for these changes are unclear, insurance companies may be finding that women are becoming riskier to insure, either by filing more claims or having more expensive claims.

It is worth noting that the practice of gender-based pricing is not uniform across the US. As of 2019, California joined Hawaii, Massachusetts, Pennsylvania, North Carolina, and Montana in banning the use of gender in car insurance pricing. In these states, insurance rates are the same for both men and women.

The impact of gender on auto insurance rates is just one factor among many that insurance companies consider when setting premiums. Other factors include age, driving experience, type of car, and driving history. Additionally, some states are pushing for legislation to include a third gender option of self-identification on official documents, which could further impact insurance rating practices.

Men pay $720 per year on average for auto insurance

The cost of auto insurance for men and women can vary depending on other factors such as age, driving record, credit score, and location. For example, in some states, women pay more for auto insurance than men, while in other states, men pay more. Additionally, men with poor credit may pay higher rates than men with good credit.

The average cost of auto insurance for men can also depend on the insurance company and the specific policy. Some insurance companies may offer discounts or have different rates for men and women. It is important for men to shop around and compare quotes from multiple insurance companies to find the best rate for their auto insurance.

Overall, the average cost of auto insurance for men is $720 per year, but this can vary depending on various factors.

Women pay $739 per year on average for auto insurance

On the other hand, women's auto insurance rates are slightly lower when they are younger due to their better reputation for safe driving. However, women's rates begin to increase after the age of 35, with a slight hike in their premiums. The exact reason for this increase is not clear, and there does not seem to be a consistent risk factor in women's driving histories to explain the cost difference.

The difference in auto insurance rates between men and women also varies depending on the state and specific insurance company. For example, in Florida, women pay on average $300 more than men, while in Wyoming, men pay $31 more than women. Additionally, women may pay significantly more than men in certain states, with the difference exceeding $100 in some cases.

It is worth noting that some states, such as California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania, have prohibited the use of gender as a factor in determining auto insurance rates. In these states, gender-based pricing is not permitted, and rates are set based on other factors such as driving experience, age, and credit history.

To mitigate higher auto insurance costs, regardless of gender, it is recommended to compare multiple insurance quotes from different companies and consider factors such as driving history, age, and the type of car insured.

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