How does gender affect car insurance rates?
Consumer websites have already conducted numerous studies comparing quotes from different car insurance providers to find out what effect gender has on premiums, and there was one widespread finding – that age affects the insurance cost gap between the sexes.
Because a person’s age is related to driving experience and the risk of being involved in an accident, young drivers often pay the highest auto insurance rates.
Read more: America’s top auto insurers in 2022 – a region-by-region breakdown
In its latest price analysis, insurance comparison website The Zebra compared more than 83 million auto premiums in every US ZIP code, using a 30-year-old male driver of a Honda Accord with comprehensive coverage as the profile sample. The firm then adjusted the driver profile differently based on common pricing factors, which include gender and age.
The site found that for most age groups, annual car insurance rates for men and women are about the same, with women paying $1,480 per policy, slightly higher than the $1,470 men pay. Premiums for young drivers, however, tell a different story, with young male drivers paying 14% more per year for coverage compared to their female counterparts.
The table below shows how much auto insurance premiums cost for teenagers and drivers in their 20s for both genders based on The Zebra’s analysis. Figures are updated as of August 2022.
|
Age |
Annual premiums for female drivers |
Annual premium for male drivers |
|---|---|---|
|
16 |
$5,969 |
6701 dollars |
|
17 |
5014 dollars |
5634 dollars |
|
18 |
4483 dollars |
5064 dollars |
|
19 |
3486 dollars |
3963 dollars |
|
20 |
3189 dollars |
3602 dollars |
|
21 |
2891 dollars |
2596 dollars |
|
22 |
2416 dollars |
2654 dollars |
|
23 |
2478 dollars |
2280 dollars |
|
24 |
2169 dollars |
2340 dollars |
Source: Zebra
Meanwhile, a separate analysis from consumer finance website ValuePenguin shows how the price gap narrows as drivers age. The firm used data from Quadrant Information Services to compare rates for male and female drivers in Indiana, with all sample drivers purchasing a comprehensive coverage policy on a 2015 Honda Accord. All details are also up to date as of from August 2022.
|
Age |
Annual premiums for female drivers |
Annual premiums for male drivers |
Percentage difference |
|---|---|---|---|
|
17 |
4618 dollars |
4946 dollars |
7% |
|
24 |
2159 dollars |
2277 dollars |
5.5% |
|
32 |
1831 dollars |
1846 dollars |
1% |
|
65 |
1364 dollars |
1401 dollars |
3% |
Source: ValuePenguin
Why does car insurance cost more for men than for women?
The answer to this question is that it all boils down to risk. Statistically, male drivers are more likely to be involved in accidents than female drivers. Figures from the Department of Transportation’s Fatality Analysis Reporting System (FARS), for example, show that men accounted for 72% of all car crash deaths in 2020 – the most recent data available.
Read more: Revealed – the most expensive and cheapest states for car insurance in 2022
According to the Insurance Institute for Highway Safety (IIHS), men also typically drive more miles than their female counterparts and are more likely to engage in risky driving behaviors, including speeding, driving under the influence (DUI) and not wearing seat belts. of security.
However, not all states allow auto insurance providers to use gender as a pricing factor. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania prohibit insurers from taking gender into account when calculating premiums.
What other factors affect car insurance premiums?
While gender clearly has an impact on auto insurance rates, it’s not the biggest factor that dictates car insurance prices – that title goes to driving history.
In ValuePenguin’s analysis, an at-fault accident increases auto insurance premiums, regardless of gender, by an average of 48%. For female drivers, annual premiums increase from $4,618 to $6,854 after an at-fault crash, while premiums for men increase from $4,946 to $7,320.
Other factors that affect the cost of auto coverage include marital status, residence, car make and model, and credit score.
Read more: Does car color affect auto insurance rates?
How can drivers save on car insurance premiums?
Regardless of gender, drivers can use a number of practical strategies to lower auto insurance costs. Here are some of them:
1. Comparing car insurance rates
Because every driver’s profile and circumstances are different, there is no single insurer that can offer the cheapest quotes for everyone. Because of this, the most effective way for drivers to find the lowest possible rate is to compare car insurance rates. The Internet is filled with insurance comparison websites that are easily accessible to drivers. Some of these platforms also recommend drivers consider local and regional insurers as these often have higher customer satisfaction ratings and offer less expensive policies compared to the big players.
2. Taking advantage of discounts
Car insurance providers offer a variety of discounts that drivers can take advantage of to lower their annual premiums. Drivers can often use these through:
- Bundling auto policies with homeowners or renters insurance
- Insuring multiple vehicles in a single policy
- Maintaining a clean driving record
- Full payment of premiums instead of monthly installments
- Installing safety and security features
- Taking defensive driving courses
- Be a member of professional organizations or membership groups
- Maintaining good grades for students
3. Skipping unnecessary coverage
Auto insurance companies offer a variety of coverage options that affect how much premiums will cost. Consumer finance websites suggest dropping unnecessary coverage so drivers can lower rates.
4. Keeping a clean driving record
Maintaining a clean driving record is among the best ways for drivers to access affordable car insurance rates. Safe driver discounts vary between insurance providers, but typically, drivers can access between 10% and 25% premium reductions for adopting safe driving practices.
5. Maintaining a good credit rating
In most states, insurers use a person’s credit score in calculating premiums. According to the Insurance Information Institute (III), this is because there is a correlation between a driver’s credit rating and the likelihood of making claims.
Read more: What drivers need to know about their auto insurance score
6. Increasing the deductible amount
A higher deductible means drivers will pay lower premiums. However, this also increases the amount they have to pay before their auto insurance picks up the tab, so policyholders need to make sure they keep the value at a level they can afford.
7. Controlling insurance costs when buying a car
Some cars are more expensive to insure than others. For drivers looking to save on car insurance costs, experts recommend checking out sedans, vans and other family-friendly vehicles as these often have the lowest premiums.
Read more: Revealed – the most expensive cars to insure in the US
8. Switching to usage-based or pay-per-mile insurance
According to consumer websites, enrolling in a usage-based insurance (UBI) program is beneficial for drivers who drive less than 10,000 miles each year. This is often done when the insurer installs a telematics device in the vehicle. This device, also called a black box, tracks driving behavior, allowing drivers to receive discounts based on how well and how much they drive.
9. Use of public transport
Using mass transit reduces how much a person drives, which can also have an impact on premium prices.
10. Shopping when it’s time to renew
Car insurance rates change frequently in order for companies to stay competitive and get new customers. Because of this, it would be beneficial for drivers to review their policies each time they are renewed so that they can get the best coverage that suits their current needs at the cheapest price.