Who Really Pays More in Car Insurance, Men or Women?

Lucy Lazarony
November 3, 2020

It is widely believed that male drivers, especially young male drivers, cause more and costlier accidents than women and are charged more in car insurance. But a 2017 study from Consumer Federation of America found that some women pay more for auto insurance than men. Most large auto insurance companies charge 40-year-old and 60-year-old women higher rates than men, often more than $100 a year. And female motorists with perfect driving records often pay significantly more for auto insurance than male drivers with identical driving records. In 38 instances, women with perfect driving records were charged at least $100 more per year than male drivers. However, auto premiums were lower for 20-year-old women than 20-year-old men most of the time. So among the younger driving set, it is still true that men pay more than women for car insurance. Let’s continue to explore whether men or women pay more for car insurance.

Men are Higher Risks Than Women on the Road

Men are higher risks as drivers than women. Men speed more, get in more accidents and have more DUI convictions. Men are also less likely to wear seatbelts. So going by risk alone, it would make sense that men would pay more than women. But according to the Consumer Federation of America study, only young men are likely to pay more than women for car insurance.

States that Restrict Gender from Auto Insurance Pricing

There are seven states that ban gender in auto insurance pricing. These seven states are California, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania and Hawaii. So in these seven states gender would not be used as a factor in auto insurance pricing. And there also would be no debate about who pays more for car insurance, men or women, since gender isn’t used in the pricing.

Texas Study Finds Women Pay More for Auto Insurance

A 2018 study by Texas Appleseed, a nonprofit organization promoting social and economic justice, found that women in Texas paid $56 more a year on average for car insurance than men. And single and divorced women paid $80 more a year for car insurance than single and divorced men.

Another Study Finds Women and Men Close Together in Pricing

A recent study found women and men to be close together in auto insurance pricing. For drivers of most ages, women pay $740 per six-month policy, while men pay $735 per six-month policy. So the results are quite close, just $5 difference. But women are still paying slightly more than men for car insurance.

But young men do pay more than young women for car insurance. Teen male drivers pay about 14 percent more for car insurance than teen female drivers. Male drivers pay 8 percent more than female drivers between the ages of 20 and 24. So this is another study where younger male drivers are paying more than their female counterparts for car insurance.

So it seems that among younger drivers, teens and early twenties, male drivers pay more for car insurance and among older drivers it seems that women pay more for car insurance than men, especially 40-year-old women and 60-year-old women.

Other Factors That Influence Auto Insurance Rates

There are many other factors that influence the price of car insurance beyond gender. Let’s look at what else is impacting your car insurance premium. Many of these factors can be changed for the better, so you may not be far away from a lower car insurance premium.

Your Driving Record. If you have a good driving record and obey the rules of the road, you will pay less for your car insurance than someone with speeding tickets, DUIs and at-fault accidents on their record. You may even qualify for a good driver discount. So if you have been a good driver, speak up and let your car insurance company know.

Your Credit Score. Unless you live in Massachusetts, California and Hawaii, your credit data is being used by auto insurance companies for insurance pricing. Drivers with good and excellent credit will be rewarded with the lowest insurance rates. Drivers with no and low credit will pay much more for their auto insurance. To improve your credit, pay bills on-time and get debt levels low and avoid taking on new debt. Behind on bills? Getting current on your bills is a big step to improving your credit. So make that a top priority.

Your Age. Drivers under the age of 25 and over the age of 65 have more serious accidents and pay more for insurance. Drivers of the ages in-between pay less for car insurance.

Your Neighborhood. If you live in a neighborhood with high accident claims and high crime, you will pay more for your auto insurance. If you live in a neighborhood with low accident claims and low crime, you will pay much less for your auto insurance. So choose a safe neighborhood and save money on your car insurance.

Your Marital Status. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Home Ownership. Homeowners drive more safely and save money on their car insurance premiums. So let your car insurance company know when you buy a home. It will save you money on your car insurance.

How Much You Drive. If you are a heavy commuter and rack up the miles on the road, you will pay more for auto insurance. But if you drive far fewer miles and are a low-mileage driver you will pay much less for car insurance. Drive less and pay less for car insurance.

Having Safety Features on Your Car. Having certain anti-theft or safety features on your car will lower your car insurance. So check with your car insurance company about the features on your car. You could save money on your premium.

Looking for more ways to save on auto insurance? Here are some tips for saving money on your auto insurance.

Bundle Your Auto Policy. Bundle your auto insurance policy with another insurance policy such as homeowners policy and you’ll save money on your car insurance.

Insure More than One Car. Insuring more than one car with the same insurance company will save you money.

Pay Once or Twice a Year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your auto premium is lower when you pay just once or twice a year.

Join Professional Organizations. Members of particular professional organizations and affiliate groups get discounts on car insurance. So check the memberships in your wallet and find out how much you can save.

Maintain Your Car Insurance. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance and save money.

Check for Discounts. Students, veterans and good drivers all may be eligible for discounts on car insurance. Sound like you? Ask your insurance company for a discount.

Choose a High Deductible. A deductible is the amount you need to pay before your auto insurance company begins to pay for your damages to your car or losses. Choosing a high deductible will lower your auto insurance premium. And here’s another tip. Put the deductible amount into a small emergency fund. This way the money will be there should you need it for an auto insurance claim.

Shop Around for Car Insurance. To get the best deal on car insurance, you will need to compare rates from several insurance companies. SmartFinancial makes it easy to do. Just input a zip code to get started. Next, answer a few, quick questions and you’ll be comparing auto insurance rates near you in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and price that you want.

Get a Free Auto Insurance Quote Online Now.

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