How Gender Affects Auto Insurance Rates

One of the things that car insurance companies consider when underwriting your policy is whether you’re a male or female. It’s all about statistics to them, and statistically, men are more likely to be involved in car accidents, which means they are more likely to make claims and cost the insurer money.

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But what sort of impact can gender have on insurance rates, how much can you expect to pay as a male, will you always pay more, and what can you do to reduce those rates?

Why Do Men Pay More?

As noted above, underwriters focus on statistics above all else. When underwriting a life insurance policy, the insurer will consider your weight, activity levels, and smoking status, because they know that smokers, overweight individuals, and those with inactive lives are significantly more likely to die early than their thinner, smoke-free, and more active counterparts.

It’s the same story with auto insurance, only this time it’s all about the likelihood that you will make an insurance claim.

Young male drivers are more prone to aggressive and reckless behavior and are significantly more likely to be involved in an accident. They are also more likely to be convicted of a DUI/DWI and to get speeding tickets and other violations. 

In fact, young male drivers are the biggest liability of all and, as a result, are charged much higher rates than female drivers.

However, it’s worth noting that this really only applies to policyholders under the age of 25. The older you get, the narrower the gap between men and women becomes in terms of risk and insurance premiums. In reality, it’s less about male drivers vs female drivers and more about young vs old.

Young Drivers vs Older Drivers

The recklessness of youth seems to disappear as drivers enter their mid-twenties, at which point auto insurance rates even out for female and male drivers. There is still a difference for older drivers, but it’s slight and can be offset by many other factors. 

  • Aged 16: Average Car Insurance for Males = $3,900: Average Car Insurance for Females = $3,400.
  • Aged 17: Average Car Insurance for Males = $3,400: Average Car Insurance for Females = $2,900.
  • Aged 18: Average Car Insurance for Males = $3,050: Average Car Insurance for Females = $2,600.
  • Aged 19: Average Car Insurance for Males = $2,400: Average Car Insurance for Females = $2,050.
  • Aged 20: Average Car Insurance for Males = $2,200: Average Car Insurance for Females = $1,900.
  • Aged 21: Average Car Insurance for Males = $1,700: Average Car Insurance for Females = $1,500.
  • Aged 22: Average Car Insurance for Males = $1,550: Average Car Insurance for Females = $1,400.
  • Aged 23: Average Car Insurance for Males = $1,450: Average Car Insurance for Females = $1,300.
  • Aged 24: Average Car Insurance for Males = $1,400: Average Car Insurance for Females = $1,250.
  • Aged 25: Average Car Insurance for Males = $1,300: Average Car Insurance for Females = $1,150.

The data above represents the average across the United States. However, in the following states it is illegal for car insurers to discriminate based on gender:

  • California
  • Montana
  • Hawaii
  • Pennsylvania
  • Massachusetts
  • North Carolina

How Young Men Can Save on Auto Insurance Premiums 

Young men will always pay more than their female counterparts if they are teenagers and getting a license for the first time. But there are a few exceptions, ways in which an experienced female driver may end up paying more than their male counterparts. Simply put, having gender on your side isn’t going to guarantee lower premiums.

All the following factors can potentially increase or decrease your car insurance quotes:

1. Your Location

Car insurance costs differ considerably from one state to the next and even from one county to the next. Underwriters consider everything from the rate of car accidents and car thefts in your location, to the number of animal collisions, the risk of floods/hurricanes, and the number of vehicles on the road.

The place you store your car when not driving will also impact your rates. By choosing a safer storage place and living in a more rural area, you can decrease your risk and your rates.

The difference between car insurance in Maine and insurance in Michigan can be in the thousands of dollars for young drivers seeking full insurance coverage.

2. Your Car

You may be quoted higher rates if you have a new car, as it will be more expensive to insure. At the same time, however, a car with more safety features (airbags, anti-lock brakes, seat belts) and a higher safety rating will be much cheaper to insure.

A car that is a few years old doesn’t have any rare or expensive parts, and is fitted with all the latest safety and anti-theft features can secure you some big savings on your car insurance.

3. Your Driving Habits

The less you drive, the more you can save. Most auto insurers offer discounts for drivers who agree to the installation of telematics devices. These devices are used to track driving habits and to tweak your premiums based on the data provided.

Prove that you’re a safe driver with limited mileage and these devices can secure some big savings.

4. Your Auto Insurance Company

Different auto insurance companies charge different rates, and these can vary considerably from state to state. In most locations, GEICO trumps other providers and is significantly cheaper than the likes of Allstate, State Farm, Progressive, and more.

Get quotes from multiple providers to see which one has the cheapest premiums.

5. Your Driving Record

Safer drivers are a lower risk and you can prove your expertise by keeping a clean record and avoiding claims and moving violations. A young female driver with multiple speeding tickets will typically pay more than a young male driver with a clean record.

Your age, when combined with multiple infractions and insurance claims, makes you a high risk and limits your options when it comes to car insurance.

6. Your Credit Score and Credit History

Your credit report is considered when determining your car insurance premiums, life insurance rates, creditworthiness, and more. By maintaining a high score, you’ll get better credit card offers, loan rates, and mortgage rates, while also bringing your insurance price down.

Bottom Line: Gender is Key

Gender affects car insurance rates, life insurance rates, and more. You’re at an advantage if you’re female and most insurers will offer you lower rates to reflect this. But that’s not all.

In addition to everything we mentioned above, your marital status and whether or not you’re a homeowner or renter will also be taken into consideration.

What’s more, you can collect a host of car insurance discounts, including good student discounts, membership discounts, and more. It’s a small piece of a big puzzle, and there are multiple ways you can turn things in your favor.

Consider everything mentioned above the next time you apply for car insurance and you can reduce your insurance costs significantly.