How Much Do Men Pay For Car Insurance
On average, men pay $720 a year, or $60 a month, for auto insurance. At age 18, a male driver pays an average of $5,124 a year, or $427 a month.
At 18 years old, men pay over $1,000 more per year on average than an equal-aged female driver. The key reason for this? Teen males show a higher level of crash risk than women of the same age. The graph below shows the difference in average rates between an 18-year-old man and woman:
According to a 2018 CDC study, the rate of fatal car accidents for men between the ages of 16 and 19 was almost twice the death rate for equally-aged women drivers. Auto insurance providers take this into account when factoring risk levels to calculate premiums.
Men’s auto insurance rates decrease significantly around age 25. After that, rates stabilize, then stay fairly constant for many years if a clean driving record is maintained.
Men Are Riskier Drivers
Insurance companies are in the business of calculating risk. The less risky a person is to insure, the lower the cost, to them and to you. Insurance providers, using past historical data, have determined that male drivers participate in higher risk driving behaviour than women, and so car insurance rates are higher for men. Therefore it is possible that two people with similar driving histories or abilities may pay very different car insurance rates. Again, this relates to how much risk the insurer assigns to each type of driver.
Alcohol Often Enters The Situation
Teen boys with facial hair can pass as older and are usually the purchasers of alcohol for their friends. They also become the designated drivers more often than teen girls do. When inexperience and alcohol come together, the results are often devastating.
According to the National Highway Traffic Safety Administration, out of the number of teen drivers killed in fatal car accidents in 2006, approximately 31% were found with a high BAC or Blood Alcohol Content of more than twice the legal limit. Unfortunately, these statistics continue to rise each year and this is one of the main reasons why car insurance companies assess high rates for young drivers ages 16 to 20.
Over the past few years, many states have instituted programs directed towards this specific age group using social media outlets like Facebook and Twitter as their main platform.
These same states have also started imposing much higher fines for alcohol vendors who continue to sell their products to underage drinkers.
Do Women Always Pay Less For Car Insurance
Despite what you may have heard, women dont always get cheaper rates on car insurance.
We compared rates across providers for a sample driver in New York for a more accurate view on how much gender plays into the premiums you end up paying.
Our analysis of Quadrant data found that men under the age of 18 pay 17% more for their car insurance than women of the same age. However, between the ages of 31 and 35, women could see 5% higher rates than men.
Get A Higher Deductible
This is pretty much common sense, but if you raise your deductible, your premiums will go down. If you have a good driving record, you probably dont need a low deductible anyway.
The odds of you getting into an accident are lower, so you should save money on a monthly basis by raising the deductible as high as youre comfortable with.
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Why Is Your Car Insurance So High
Modified date: Oct. 7, 2021
It seems like car insurance rates just keep getting higher and higher.
And for good reason they are.
But youre likely wondering why is my car insurance so high?
There are several reasons your car insurance is higher than youd like including having a poor driving record, a history of claims, and a poor credit history. Also, if you drive a lot, youre driving a car thats considered unsafe, or you have children on your policy, you might see increased rates.
In this article, Ill show you what determines your auto insurance rate, why your rate is so high, and what you can do to reduce it.
A Look At The Factors
What concerns us today is demographics. When it comes to this factor, insurance companies are looking at the accident rates of the groups to which you belong, and will take those rates into account when determining how much they should charge you.
And when it comes to gender, the evidence is a little damning. Studies have shown that men are more likely than women to speed, more likely to get into accidents , more likely to drive while under the influence of drugs or alcoholic, and less likely to wear seat belts .
This is why men get charged higher premiums. In Ontario, every auto insurance company takes gender into account when determining their customers rates, a spokesperson at the IBC confirmed to LowestRates.ca on Monday.
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Is Car Insurance Expensive For A 22
If you still have your son on your policy, you might feel that since he is closer to 25, his insurance rates will drop. They actually can, but they may not drop. Males will get a break from high rates for every year they drive safely. Car insurance companies will decrease insurance rates when teens turn 20. Rates are not guaranteed to drop when males turn 25, it can happen between 25 and 27.
Auto insurance for young adults, however, is cheaper than for teenagers. The car insurance cost for a boy vs. a girl will also become more similar over time. Car insurance at age 16 for a male vs. a female will show a much larger gap.
Why Men Pay More When It Comes To Car Insurance
Last updated on November 25th, 2021 at 02:50 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.
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Do Men Or Women Pay More For Car Insurance
Our research found that men pay an average of $720 per year for car insurance, while women pay $739. Which gender pays more for auto insurance at any given point in time depends on the age of the driver. On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates. Besides age, other factors that can affect the car insurance rates of either gender include:
- Driving history
- Car make
In order to defray higher auto insurance costs regardless of your age and gender, make sure to compare multiple auto insurance quotes from many companies. Rates and coverage offerings can vary widely. Getting a broad overview of what’s available can save you a lot of money.
Is Car Insurance Higher For Men
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The Numbers Behind the Rates. 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.
Car insurance is an unavoidable expense for all drivers, regardless of state, gender, age, or other individual factors. However, the cost of car insurance is based on these and other factors, including:. Where you live Car make and model Number of cars to insure Marital status Many people assume that their gender plays a significant role in how much they pay.
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Average Car Insurance Premiums By Age And Gender
Below is a chart that summarizes premium information provided by Car Insurance.com. The premium rates quoted are based on standard minimum liability coverage, and are for comparison purposes only:
factors your age into the premiums youll pay. A 25-year-old malewill pay the highest rates, followed by a 25-year-old female. However, as you get older, those rates gradually decrease, dropping by 68% for males and 64% for females by the time you reach age 55.
I found that other factors can bump up or discount your insurance rates up with Liberty Mutual. If you have children, adding them to your policy once they reach adolescence will significantly increase your premiums. On the other hand, if your student gets good grades, youmay be eligible for a discount. And if your college-bound teen will rarely be driving, discounts might apply there, as well.
How Does Adding One Accident To Your Record Affect Rates
Next, lets analyze how an accident affects car insurance premiums for both men and women.
For full coverage, women will see a jump from $1,551 to $2,125, which is a 37% increase in cost. Rates for men raise from an average of $1,558 to $2,133 . With an accident on record, the difference between male and female insurance rates decreases from .51% to .38% so if it were a race, it would essentially be the equivalent of a photo finish.
For minimum liability, the average rate for females changes from $551 to $810, which is a 47% increase. Averages for males also increased about 47%, from $540 to $795, almost entirely eliminating the disparity between genders for rates.
Across the board, the significant factor is more often the type of coverage you have and the specific incident that affects your rates, more so than gender.
After one speeding ticket, rates go up
Note: although speeding tickets and accidents do not necessarily reflect a difference between male and female rates relative to each other, they can increase your policy overall and that amount can vary from the percentages indicated in the chart above.
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How Does Age Affect Car Insurance Premiums
Age is a major factor that insurance companies look at when determining policy rates for one of its drivers. No matter their gender, younger drivers will pay more for their car insurance premiums than any other demographic, according to HuffPost. The reason young drivers experience high rates is that, as a population, they are more likely to be high-risk drivers by speeding, forgetting to wear their seatbelt, and breaking other driving laws. It is because of these driving tendencies that young drivers also typically file more claims and cost an insurance company more money in medical bills and property damage.
Even though females pay more for their car insurance premiums on average, at less than 1 percent over what males pay, this is reversed when comparing young drivers. Per The Zebra, a young male will pay around 14 percent more for their premium than their female counterparts. This is because of the risks male drivers under 20 take when driving. Insurance companies raise rates to compensate.
Once a driver turns 25, however, their car insurance rates usually lower, and males and females with the same driving record can expect to pay almost the same. However, females pay slightly more than males by less than 1 percent, according to Insurance Journal. After the rate drop at 25 years of age, drivers can usually expect to keep around the same rate of insurance until they reach the age of 60 when there is another major drop.
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.
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.
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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Why Is Men’s Car Insurance Higher 2019
Why Is Mens Car Insurance Higher? Asked September 27, 2013 in . Auto Insurance. 16470 POINTS. Contact Me. view profile. David Osgood PRO. Agent, Rural Mutual Insurance Co., Union Grove, WI. Over the years insurance companies and other organizations have collected data about tickets, accidents, and
How Do States Handle Gender And Auto Insurance
Michigans ban on gender came as part of an overhaul of its auto insurance laws by the state legislature. Besides preventing insurers from using gender, they also can no longer use marital status, home ownership, education level, occupation, ZIP code or credit scores. This leaves insurance companies less non-driving factors to look at so they will focus on risk factors like driving record and years of experience. Michigans reform also changed up their no-fault system which was unique with no limits to now allow drivers to choose a top limit for their personal injury protection . Both changes were in the interest of bring down Michigans sky high car insurance rates.
In California, the change for gender was more of a targeted change than part of a major overhaul. The California Department of Insurance mandated that auto insurance companies operating in the state must file a revised class plan that eliminates the use of gender as a rating factor.
The California ban comes on the heels of another law that went into effect this year, which allows California residents to choose non-binary rather than male or female on driver licenses.
Gusner thinks this is just the start for states and insurers.
I wouldnt be surprised if other states begin to consider prohibiting the use of gender when setting car insurance rates as more people and state legislators are challenging the notion of using just male and female on identity forms, she said.
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Why Do Boys Pay More For Auto Insurance Than Girls
Young men under the age of 25 generally pay higher auto insurance than young women. Young men have a tendency to drive faster than young women, and unfortunately, less of a tendency to wear seatbelts. Young men also tend to drive more than young women and engage in more dangerous, reckless driving, and often get more DUIs .
Why Do Auto Insurers Use Gender When Setting Rates
The reason insurance companies often charge men more than women is all about risk.
Statistics show men are a higher risk because of three main reasons: accidents, speeding, and DUI convictions. Men are more likely to be involved in all three. In fact, the National Highway Traffic Safety Administration said that male drivers involved in fatal accidents are more likely to have been speeding than women.
Men are also less likely to wear a seatbelt. Theyre additionally more apt to drive vehicles with higher auto insurance rates.
Auto insurance uses multiple factors when setting rates:
- Type of vehicle
If gender is taken out of the equation, insurers will continue to base rates on the other factors.
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Who Pays More For Car Insurance: Men Or Women
A popular assumption is that the average car insurance rates by age and gender would lean more favorably to women. After all, men are statistically much more likely to get into accidents than women, are more prone to drive without seatbelts, and have historically received more speeding tickets than women across all age groups. Naturally, we would expect men to pay substantially more for auto insurance.
Surprisingly, the data does not support this assumption. Take a look at the chart above. Although men pay more for auto insurance when it comes to full coverage, they dont pay more for all aspects of auto insurance .
When you examine minimum liability, men actually pay
For 12 months of full coverage, insurance for females is $7 less than insurance for males . When you examine minimum liability however, you can see that men actually pay an average of $11 less .
However, keep in mind that this data doesnt take into account ranges of age, location, or the amount of miles traveled per day. Its an average, and therefore doesnt necessarily represent what any one person might pay .
If these additional factors were included, the data could likely paint a different picture. The key takeaway is that gender alone does not significantly contribute to the cost difference in insurance.