What Gender Pays More for Car Insurance?

The gender that pays more for car insurance is men, especially teenage and young adult men. This is because they are involved in more fatal car accidents and are more likely to drive under the influence. As a result, insurance companies typically charge them more.

Generally speaking, car insurance providers charge males more for policies because they are more likely to cause accidents and file claims. Read to the very end and check out what we have compiled for the gender that pays more for car insurance.

Average Car Insurance Costs for Men and Women

According to our research, the national average cost for a standard coverage for car insurance is $1,340 annually ($112 monthly) for women. And $1,391 per annum ($116 monthly) for men. This means men pay about $51 more every year, or about 4% more than women on average.

Does Gender Affect Car Insurance Rates in Each State?

Fortunately, not all states allow insurance companies to make use of gender as a factor to determine car insurance rates. Below are the states that do not allow gender to impact car insurance premiums:

California
Hawaii
Massachusetts
Michigan
Montana
North Carolina
Pennsylvania

If you are living in any of the above states, your insurance provider cannot use gender to set the policy rates. In certain cases, the insurance company won’t even ask for the gender of the potential policyholder.

Why Don’t All States Charge Men More for Car Insurance?

Just as it is written above, some states don’t allow car insurance companies to fix coverage rates based on gender. In these states, insurers will make use of other factors to determine rates. In theory, this means men shouldn’t be charged more than women just because of their gender. However, other factors that insurers will use can still result in men paying more for car insurance.

According to research, over a million car insurance quotes show that in states where gender is considered, men pay about 10% more than women. In states where gender can’t be used, this difference only drops to 6%.

However, keep in mind that insurance companies may charge some women more than men based on their unique rating formulas. Since each company calculates rates differently, it is advisable to compare quotes from multiple insurers in order to get the best deal and rates.

Other Factors That Affect Car Insurance Rates

Check out the other genders that may greatly impact your car insurance rates aside from gender;

Driving Record: If you have a clean driving record, there is a chance that you’ll get lower rates. If you have speeding tickets, accidents, or DUI convictions, you will be charged more.
Age and Experience: Younger drivers, especially teenagers and individuals that are below 25, usually pay more because they’re considered less experienced. Even if you start driving later in life, your lack of experience can result in getting charged more.
Location: Living in a big city with high crime rates usually means higher insurance premiums. In contrast, small towns or rural areas usually have very low rates.
Vehicle Make and Model: Cars with high safety ratings, like a Honda Accord, are very affordable to insure than the sports cars. Generally, older cars are cheaper to insure than newer ones.
Credit Score: Insurers in most states make use of credit score to set rates. A poor credit history can mean getting higher premiums, while excellent credit can result in getting lower rates. You need to know that the credit score practice is generally not allowed in some states, such as California, Hawaii, and Massachusetts.

In addition, married drivers or couples often pay less than single drivers. Insurers see married drivers as individuals that are more financially stable and less likely to be seriously injured in accidents. These above factors are what will be taken into consideration when insurers decide what to do to determine your rates.

Frequently Asked Questions

Do men or women pay more for car insurance?

Typically, men pay more for car insurance. Insurance companies charge more for younger males, especially under the age of 25.

Do women’s insurance rates increase after marriage or childbirth?

Sometimes, marriage or childbirth may affect women’s insurance rates. And the reason is that insurance considers potential risks and additional responsibilities.