What Gender Pays More for Car Insurance? (2024) (2024)

FAQs

Which gender pays more car insurance? ›

In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.

Some states don't permit gender to impact insurance rates

There are a few states that explicitly forbid insurance companies from considering gender when it comes to insurance rates. Those states are: California.

Teen and senior drivers are statistically more likely to be involved in car accidents, so insurance companies charge them the most for coverage to compensate for the increased risk.

What to know first. 18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 15 percent more to insure than their female counterparts.

Historically, insurance companies have used gender as a factor in setting rates, with young male drivers typically paying higher premiums due to statistical data showing they are more likely to be involved in accidents. However, the use of gender in insurance pricing varies by state and insurance provider.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

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.

— California Insurance Commissioner Dave Jones has issued new regulations that prohibit the use of gender in private passenger automobile insurance rating in California. The Gender Non-Discrimination in Automobile Insurance Rating Regulation became effective on January 1, 2019.

Your age – In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below age 25 drive your car.

State Farm is the largest auto insurance company in the U.S. It earns about 18% of the money people spend on personal car insurance policies. The company has about 58,000 employees and 19,000 agents. State Farm operates as a mutual insurance company, meaning that its customers own it.

What profession has the most expensive car insurance? ›

Commercial Drivers, Chefs, Hairdressers & Bar Staff Charged The Most For Car Insurance. Being a driver in the hospitality trade means that your car insurance is the most expensive out of the UK's 100 most common job roles.

However, many insurance companies reduce premiums for female drivers slightly earlier — from the ages of 21 to 25 Then as men hit 25, their premiums come back in line with the drop that female drivers have already experienced. Still, when all is said and done, women in many states pay more.

On average, women pay 1% less than do men once they reach the age of 25. Data used by auto insurers show women and men present similar amounts of risk at most ages.

Age-related statistics

The average car insurance cost for 16-year-old drivers with their own policy is $8,765. The average rate for 17-year-olds is $6,829. Car insurance is cheapest for 60-year-old drivers, averaging $1,915 annually.

The main reason for this is the differences that surround male vs female driving statistics. Statistically speaking, more male drivers under the age of 25 are involved in auto accidents than female drivers. This is the leading reason why insurance is higher for males.

This is simply because the risk of a life insurance company paying a claim sooner for a male than they will for a female is statistically much higher. Life insurance actuaries examine mortality rates and set higher rates for men because women live longer.