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Why Is Car Insurance Higher For Males

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The Numbers Behind The Rates

Why Is the Cost of Car Insurance for Boys Higher Than for Girls? : Auto Insurance

While gender-based car insurance may seem biased, the following statistics provided by the Insurance Institute for Highway Safety help explain why gender is a rating factor for car insurance:

  • 71% of all car accident-related deaths in 2012 were males.
  • The number of drivers who died in a fatal car accident was 50% higher for men than women in 2008.
  • Men are much more likely to have been under the influence of alcohol in a fatal crash. In 2012, 38% of fatally injured male drivers had BACs of over 0.08%, as compared to 20% of fatally injured female drivers.
  • Seat belt use was observed in 88% of female front seat occupants, as compared to 84% of male front seat occupants.
  • In 2012, 23% of male drivers who were involved in fatal accidents were speeding at the time of the accident, while 14% of women involved in fatal crashes were doing the same.

Since risk exposure is a large part of an insurance premium, women can generally expect to pay lower premiums than men.

NOTE: If you have a poor driving record with a high history of claims, however, you will still present a high risk to your insurerregardless of your genderand pay a high car insurance premium.

What The Insurance Industry Says About Gender Rating

The insurance industry, broadly speaking, argues that tighter regulations on gender rating work against consumers best interests. A 2019 report from the Insurance Information Institute, an industry-supported consumer education organization, states that because insurers have to base rates on actuarially sound variables developed through statistical analysis and approved by regulators, they must make up for the loss of a variable such as gender by giving more or less weight to other variables.

Imagine that male drivers have higher accident costs and are more likely to drive pickup trucks, the report says. If gender is restricted, then the proxy rating variable for gender could become pickup trucks. In this situation, rates for pickup trucks may increase, while rates for other types of vehicles may decrease. Another possible outcome, which was noted in the academic study about EU life insurance premiums, is that lower-risk customers will end up subsidizing higher-risk customers.

Why Is Car Insurance More Expensive For Men Than Women

By | Submitted On May 09, 2009

In most of the circumstances, males need to pay more for auto insurances than females. Have you ever wondered why this happens? Is it due to the reason that males normally drive when a couple commute by an automobile? Or could it be because males commute to work and women tends to stay at home in most of the situations , and hence increasing their chances to be involved more in an accident?

The real fact is that according to statistics, a higher percentage of people to be involved in an accident are the males. This may sound surprising because women are actually more in number than men in the United States. By statistics, the sex ratio was found to be 105 girls to every 100 boys. So the question arises as “Are men worse drivers as compared to women? Not likely!

Auto insurance companies employ these statistics to determine their premium rates. In fact, this serves as the basis for premium rates. According to the statistical information, the gender that will probably pay higher for coverage is indicated to be at a higher risk compared to the other. The insurance companies collect and study data obtained from accident records. The information obtained from this study is used to raise rates for only those who have been in a higher probability of loss and hence lower for those who have characteristics of lower risks.

Compare free auto insurance quotes .

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Age Affects The Insurance Cost Gap Between Genders

While adult men and women pay about the same amount for car insurance, the gap changes as drivers get older.

While all teens pay more for car insurance than older adults, teenage boys pay the most of all. Our sample boy driver got a quote for $4,946 per year, or $328 more than a girl of the same age.

On the other hand, a 32-year-old man can expect to pay about $15 more per year than a woman.

Age
-2.6%

Why Is It Legal To Charge Men More For Car Insurance

Why Car Insurance Rates for 19 Year Old Male &  Female ...

By Jacqueline Savron, Avvo.com

If youre a man, theres a good chance youve paid more for car insurance than women, simply because youre a man. And if youre a woman, chances are youve enjoyed lower insurance rates simply because youre a woman.

But why is this kind of gender discrimination okay in modern times, when were all supposed to be equal under the law? Read on to find out.

A brief history of discrimination law

Before the Civil Rights Act of 1964, private businesses could discriminate against customers and employees for any reason. And, indeed, they did, usually for racial reasons.

Title II of the Civil Rights Act put an end to businesses right to discriminate against certain customers. Specifically, it forbid certain types of privately-owned businesses open to the public from discriminating against customers based on race, color, religion, or national origin, but the act did not say anything gender. Businesses not open to the public, like private country clubs, were exempt. Title VII of the Civil Rights Act did mention gender, but it only applied to employer-employee relations, not business-customer relations.

After the Civil Rights Act of 1964, a bevy of other discrimination laws were passed by the federal government and states, some having to do with gender, but also extending protection to pregnant women, disabled people, military personnel and others.

So why are insurance companies allowed to discriminate based on gender?

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How Long Will Boys Pay High Rates

Although teenage boys are likely to object to driving the old mans car, doing this saves a bundle on car insurance. A teen boy can drive a car under his own policy name but must expect to pay a much higher monthly premium. When does insurance go down for males?

The good news is that as long as the driver has a good clean driving record, the rates are likely to decrease when it is time to renew his insurance policy.

Later on, a young man may even find it economical to change to a single policy instead of adding a car onto the family policy.

Even though boys have higher rates now, once they are into adulthood, their rates will decrease. Rates for adults are lower than rates for teenagers. Most rates for young adults decrease once they turn 25. Once drivers are married and get past the age of 35, their rate will decrease even more. Do married couples pay more for car insurance if theyre under 25? Which group pays more for car insurance married or single? Young married people do enjoy lower rates, but age makes the most difference.

Drivers education courses may also help lower insurance rates, as well as safety devices like an anti-theft alarm system and anti-lock brakes installed on the car.

Why Men Pay More For Car Insurance Than Women

  • Men drive more than women, on average, and are also more likely to die in a car accident.
  • Speeding is more commonly a factor in fatal accidents where men were driving.
  • Men are more likely to die in a car accident while driving drunk.

For more information, check out WalletHubs data on average car insurance rates by age and gender.

When does car insurance go down for females?

Car insurance rates begin to go down for young female drivers at age 21, usually. When men or women turn 25, their statistical risk of being in an accident goes way down. However, many insurance companies begin to reduce premiums for female drivers four years earlier. From the ages of 21 to 25, female drivers rates gradually drop nearly 25%, according to studies. Womens rates continue to decrease after age 25, but more gradually, until they level off between 50 and 60 years old.read full answer

Between the ages of 65 and 75 , rates start to rise again for both women and men. Studies by the Centers for Disease Control and Prevention show that senior drivers have slower reflexes, which causes more crashes. Also, the risk of being injured or killed in an auto accident increases as you age. There is more risk of claims for your insurer, resulting in higher costs for you.

What age does car insurance go down for males?

The following chart reflects rates for single male drivers in 10 zip codes for each state, with full coverage on a 2017 Honda Accord.

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How Does Adding A Speeding Ticket Affect Rates By Gender

While there is a significant difference in the likelihood of men vs women getting a speeding ticket, does it affect insurance rates differently by gender? Lets take a look.

Full coverage
0.45%1.79%

For full coverage, female car insurance goes up from $1,551 to $1,863, which is a 20.1% increase. A man can expect his insurance to go up from $1,558 to $1,871, which is slightly less at a flat 20% increase. As the chart above indicates, the difference between genders when it comes to a speeding ticket affecting rates is fairly insignificant .

~20%

After an accident, rates increase by

Minimum liability presents slightly different numbers. Women paying an average of $551 can expect their premiums to go up to $680, which is a 23.4% increase. Men paying an average of $540 will likely see their premiums jump up to $667 which is a 23.5% increase. Women, therefore, will see a lesser premium increase for minimum liability than men after getting a speeding ticket, which closes the initial gap slightly .3%, as indicated in the chart above.

Overall however, there is very little significant difference between rates for each gender prior to and following a speeding ticket.

Is Anyone Doing Anything About It

Why men paying more for car insurance is worse than you think

Advocacy groups are certainly trying, and due in part to the research above, some lawmakers are, too. In 2018, California Congressman Mark Takano proposed legislation calling on the federal government to investigate the issue of racial disparities in the insurance market.

Unfortunately, thats about as much progress as anyone has made on the federal level. As more research is done on the issue, more public pressure will likely lead to better results. Until then, its up to consumers and advocacy groups to demand change.

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Why Do Men Pay More For Car Insurance

It may not be fair, but its a fact of life. Price discrimination exists. Women have dealt with this for years and will generally pay more for things like a haircut, dry cleaning, or shoes. But if youre a man, and youve been pricing out car insurance, youve learned that price discrimination can work both ways. Men, on average, will pay more for car insurance than women. The question is why?

Tips To Save On Car Insurance

Age and gender are just two of the factors that affect your car insurance rates. Here are some time tested methods for saving on car insurance:

  • Shop around. Its smart to compare car insurance quotes from multiple companies to find the best deal. Car insurance rates can vary widely among insurers for the same coverage and same driver.
  • Ask for discounts. Insurers have a wide variety of car insurance discounts, such as price breaks for good drivers, good students, vehicle safety devices and buying multiple policies.
  • Get rewarded for safe driving. Some insurance companies offer usage-based insurance programs, which track your driving behaviors and reward good drivers with better rates.
  • Enroll your teen in a safe-driving course. If your teen completes an approved safe driving course, you could save on your auto insurance. Here are some insurance programs that help teen drivers.

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Less Likely To Utilize Seat Belts

Young male drivers are also less likely to utilize seat belts, assuming air bags will cushion the blow of a head-on collision and side impact air bags will take care of the rest. Unfortunately, this is a myth that many believe to be factual.

When in actuality, the air bags are to be used in tandem with seat belts, not as a replacement. Less than 20% of young male drivers use seatbelts regularly and out of that small number, only about 10% use them correctly.

This is another reason why they pay the price when it comes to car insurance. The car insurance industry takes all of the statistics provided by the various traffic and safety reports and uses this data to compile their data.

If young male drivers would begin to exercise even the most rudimentary safety procedures, they would see the averages drop substantially. Over a period of two to five years, the number of fatal crashes resulting from the failure to use seatbelts would drop and have a significant impact on the car insurance industrys rate calculations.

Why Do Men And Women Pay Different Car Insurance Rates

Why Is Car Insurance Higher For Males

The cost difference between teenage men and women drivers is easy to explain. Since they show a better reputation for safe driving than men, women tend to pay cheaper rates when they’re younger. At age 25, both genders see fairly equal rates due to maturity and more experience behind the wheel.

Then why do women see higher rates than men when they’re older? There is currently no clear answer. In 2017, the Consumer Federation of America found that women between the ages of 40 and 60 paid more for minimum liability coverage than men with similar histories. Looking at the underlying factors used to calculate claim risk level, there doesn’t seem to be a clear and constant risk factor in women drivers’ histories to reveal a reason for the cost difference.

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Why Men Pay More When It Comes To Car Insurance

Last updated on July 28th, 2021 at 05:12 pm by Bill Tsouvalas

If you are a man who is currently searching for car insurance you will soon realise that you will be coughing out more in terms of car insurance premium, and there is a reason why. The stats are stacked against you. The difference in insurance premiums among men can be drastically different depending on your age, your location and other variables.

Some argue that the reason why the statistics are so high is because there are more male drivers than female drivers. Whatever way you choose to look at it, the fact remains that you will still pay out more.

Why Do Teens Face Higher Rates

Statistically, teen drivers are more likely to be involved in auto accidents, get traffic tickets, and commit traffic violations than are older drivers. Car insurance companies take this into consideration when determining how high a risk it is to insure teen drivers.

Fortunately, there are ways to keep teen car insurance rates low.

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What Is The Best Way To Find An Auto Insurance Policy

The best way to find auto insurance is to compare policies online. This saves you time. Calling around to several companies can be time-consuming. And as they say, time is money.

Comparing rates online will allow you to receive several quotes you can compare. Once you compare rates, you can choose the policy that is best for you and your family.

Remember when comparing rates that the cheapest auto insurance rate is not always the best rate. If you pay a cheap price but dont have the coverage you need, you will end up paying out of pocket when something happens to your vehicle.

Get started now. You can compare auto insurance quotes right now by entering your zip code in our FREE tool below!

So What Should Young Men Do To Pay Less

Why Do Guys Pay More Than Women For Insurance?
  • Get Insured Start building an insurance record as soon as possible, by getting onto a parents or other adults policy as an occasional driver. In terms of insurance experience, every year youre insured counts the same, and this is the most affordable way to build up those years of experience.
  • Take a Course Taking a course from an approved driving school wont save you huge dollars, but its well worth it in terms of developing good driving habits early on.
  • Drive a safer vehicle Stay away from the fast and furious types. But also, some cars that might not seem like crash risks may cost more to insure because:
  • They dont seem to protect the passengers as well in an accident or
  • Theyre a popular target for thieves
  • To be certain, when shopping for a vehicle, call for quotes on different cars youre considering.

  • Track and Save Opt into a telematics or UBI program to allow the insurance company to monitor your driving, either with a device you install in your car, or an app you download to your phone. Most insurers now offer this option, and it can lead to a 10-25% discount if you drive safely.
  • Dont be a Lead Foot If you sign up for telematics, everything you do behind the wheel matters. Obey the speed limit, of course, but also be sure to accelerate and brake gradually. Imagine a butler in the back seat with a tray full of champagne glasses that cant be spilt. Also, if your work or school allows it, avoid driving during peak traffic hours.
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