Gender is often one of the factors car insurance companies consider when determining premiums. In general, women pay less than men, and the difference is more pronounced among young and inexperienced drivers. However, this gender disparity disappears when drivers reach a certain age. From this point on, male and female drivers are more or less equal.
How does gender affect car insurance rates?
Consumer websites have already conducted numerous studies comparing quotes from different car insurance providers to find out what effect gender has on insurance premiums, and a common finding is that age affects the difference in insurance costs between the sexes.
Because a person’s age correlates with driving experience and risk of getting into an accident, young drivers often pay the highest car insurance rates.
Read more: America’s Best Auto Insurers in 2022 – Breakdown by Region
In its latest price analysis, insurance comparison site The Zebra compared more than 83 million auto premiums by every US zip code, using a 30-year-old male driver driving a Honda Accord with full coverage as a sample profile. The company then customized the driver’s profile differently based on common pricing factors, including gender and age.
The site found that annual car insurance rates for men and women are about the same for most age groups, with women paying $1,480 per policy, slightly higher than the $1,470 men shell out. However, premiums for young drivers tell a different story, with younger male drivers paying 14% more per year for insurance than their female counterparts.
The chart below shows how much car insurance premiums cost for drivers in their teens and 20s of both sexes, based on analysis by The Zebra. Figures are current as of August 2022.
Annual awards for women managers
A separate analysis by consumer finance website ValuePenguin shows how the gap narrows as drivers age. The company used data from Quadrant Information Services to compare rates for male and female drivers in Indiana, with all sample drivers purchasing a full coverage policy on a 2015 Honda Accord. All details are also current as of August 2022.
Annual awards for women managers
Annual awards for male executives
Why does car insurance cost more for men than for women?
The answer to this question is that it all comes down to risk. Statistically, male drivers are more likely to get into accidents than female drivers. For example, data from the Department of Transportation’s Fatality Analysis Reporting System (FARS) shows that men will account for 72% of all car crash fatalities in 2020, the most recent data available.
Read more: Clarity – the most and cheapest states for car insurance in 2022
According to the Insurance Institute for Highway Safety (IIHS), men typically drive more miles than their female counterparts and are more likely to engage in risky driving behaviors, including speeding, driving under the influence (DUI) and not wearing seat belts.
However, not all states allow auto insurance providers to use gender as a pricing factor. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania prohibit insurers from taking gender into account when calculating premiums.
What other factors affect car insurance premiums?
While gender clearly affects car insurance rates, it’s not the biggest determinant of car insurance rates – that title goes to driving history.
In ValuePenguin’s analysis, an at-fault accident increases car insurance premiums by an average of 48% regardless of gender. Annual rates for female drivers will increase from $4,618 to $6,854 after an at-fault collision, while premiums for men will increase from $4,946 to $7,320.
Other factors that affect the cost of auto coverage include marital status, place of residence, car make and model, and credit score.
Read more: Does car color affect car insurance prices?
How can drivers save on car insurance premiums?
Regardless of gender, drivers can use a number of practical strategies to reduce their car insurance costs. Here are some of them:
1. Comparing car insurance rates
Because every driver’s profile and circumstances are different, there is no single insurer that can offer the best quotes for everyone. Therefore, the most effective way for drivers to find the lowest possible rate is to compare car insurance rates. The internet is full of insurance comparison websites that are easily accessible to motorists. Some of these platforms also recommend that drivers consider local and regional insurers, as they often have higher customer satisfaction ratings and offer cheaper policies than the big insurers.
2. Taking advantage of discounts
Car insurance providers offer a variety of discounts that drivers can take advantage of to lower their annual premiums. Drivers can often use them to:
3. Skipping unnecessary coverage
Car insurance companies offer a variety of insurance options that affect the cost of premiums. Consumer finance websites recommend dropping unnecessary coverage so drivers can lower rates.
4. Keeping a clean driving record
A clean driving record is one of the best ways drivers can access affordable car insurance rates. Safe driver discounts vary between insurers, but drivers typically get 10-25% lower premiums when they practice safe driving.
5. Maintaining a good credit rating
In most states, insurers use a person’s credit score to calculate premiums. According to the Insurance Information Institute (III), this is done because there is a connection between the driver’s credit rating and the possibility of filing claims.
Read more: What drivers need to know about their car insurance score
6. Increasing the deductible amount
Higher deductibles mean drivers pay lower premiums. But it also increases the amount they have to pay before their car insurance picks up the tab, so policyholders should make sure the value stays within their reach.
7. Checking insurance costs when buying a car
Some cars are more expensive to insure than others. For drivers looking to save on auto insurance costs, experts recommend looking at sedans, vans and other family-friendly vehicles, as they often have the lowest premiums.
Read more: Clarity – the most and cheapest cars to insure in the USA
8. Switching to usage-based or paid-for-miles insurance
According to consumer websites, signing up for a usage-based insurance (UBI) program is beneficial for drivers who drive fewer than 10,000 miles each year. This is often done by the insurer installing a telematics device in the vehicle. Also called a black box, this device monitors driving behavior, allowing drivers to receive discounts based on when, how well and how much they drive.
Using mass transit reduces how much a person drives their vehicle, which can also affect premium prices.
10. You shop around when it’s time to upgrade
Auto insurance rates change frequently so that companies can stay competitive and gain new customers. Therefore, it would be beneficial for drivers to review their policies each time they renew, so that they can get the best coverage at the most affordable price to meet their current needs.
At what age does car insurance go down?
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Age and car insurance The price usually drops gradually between the ages of 25 and 60. For most, car insurance is more expensive the younger you are, and the price drops as you enter a new decade. To see also : A court has ruled out some Michigan auto insurance cuts, but the union has vowed to appeal. People in their 30s often pay more than people in their 40s, who in turn pay more than people in their 50s.
Does car insurance drop at 21? Yes, car insurance goes down when you turn 21. Car insurance drops about 20% between the ages of 20 and 21, and car insurance premiums decrease every year throughout your 20s and 30s. The 21-year rate drop is the second largest age-related rate change on average.
Why does insurance go down at 25?
Yes, the price of car insurance usually drops once you are 25 years old as you are no longer considered risky to insure. To see also : What happens if someone scratches your car while parked and left?. But lower rates aren’t guaranteed for all drivers.
At what age is car insurance cheapest?
At what age is car insurance cheapest? Car insurance is significantly cheaper for older drivers. Drivers in their 60s tend to have the cheapest car insurance premiums, with drivers 70 and older seeing a slight increase in premiums.
Why didn’t my insurance go down when I turned 25?
If your teenage driving record includes multiple violations and/or at-fault accidents, your rates won’t drop after you turn 25. If you have a particularly poor driving record, your rates may even increase in your mid-twenties.
Why does car insurance drop at 26?
Why does car insurance drop so much for drivers under 25? 16-year-old drivers pay about $4,000 more for car insurance than 25-year-olds. The significant gap is primarily due to the younger driver’s lack of experience behind the wheel.
Does car insurance go down when you turn 30?
Many auto insurance companies lower rates after you turn 30 because you’ve gained several years of driving experience. To see also : Do you want to make your car insurance profitable? here’s everything you need to know. But like turning 25, turning 30 doesn’t automatically qualify you for a discount.
Does insurance go down when your 25?
In general, younger drivers pay more for car insurance, but once you turn 25, the cost of your insurance policy may drop. According to CarInsurance.com, the average annual premium for a 24-year-old man with full insurance is $2,273. At age 25, that average drops to $1,989, a drop of about 12.5%.
Why didn’t my insurance go down when I turned 25?
If your teenage driving record includes multiple violations and/or at-fault accidents, your rates won’t drop after you turn 25. If you have a particularly poor driving record, your rates may even increase in your mid-twenties.
Younger drivers tend to pay more for car insurance. The highest rates are set for drivers aged 16-25. Experienced drivers get lower rates until about age 55, when rates rise again slightly.
Which category of drivers pay the highest premiums? Your age â In general, mature drivers have fewer accidents than less experienced drivers, especially teenagers. Insurers usually charge more if teenagers or young people under the age of 25 drive your car.
What groups of people pay the most of auto insurance?
While adult men and women pay about the same for car insurance, the gap changes as drivers age. While all teens pay more for car insurance than older adults, teenage boys pay the most.
What types of drivers generally pay more for insurance?
Insuring new drivers is more expensive due to lack of driving experience. Younger drivers are more likely to get into accidents, which also drives up car insurance rates. New drivers can pay up to $3,000 a year or more for car insurance, depending on the company.
Who generally pays more for car insurance?
Men pay significantly more than women for car insurance during their teenage years, while women pay slightly higher premiums in their later years. On average, we found that men pay $720 a year for auto insurance, while women pay $739 a year.
What age group pays the most in car insurance?
Statistically, drivers under 25 and over 65 pay more for car insurance than middle-aged adults. The reason: Teenagers are three times more likely to be involved in an accident than drivers 20 and older, giving them the highest insurance premiums of the age group.
Florida is the most expensive state for auto insurance, with an average auto insurance premium of $2,560 per year, a roughly 23% increase from 2021, according to Insure.com’s 2022 analysis. In particular, drivers in no-fault states like Florida and Michigan pay more for auto insurance than drivers in other states.
Michigan has the highest auto insurance rates, with drivers paying an average of $4,386 per year for minimum coverage.
What is the highest insurance for a car?
What are the most expensive cars to insure in 2021? The most expensive car to insure in 2021 is the Maserati Quattroporte, which costs an average of $419 a month – or a whopping $5,024 a year. That’s 239% more than the national average car insurance premium.
What groups of people pay the most of auto insurance?
While adult men and women pay about the same for car insurance, the gap changes as drivers age. While all teens pay more for car insurance than older adults, teenage boys pay the most.
Which age group pays the most for car insurance? Statistically, drivers under 25 and over 65 pay more for car insurance than middle-aged adults. The reason: Teenagers are three times more likely to be involved in an accident than drivers 20 and older, giving them the highest insurance premiums of the age group.
Who generally pays more for car insurance?
Men pay significantly more than women for car insurance during their teenage years, while women pay slightly higher premiums in their later years. On average, we found that men pay $720 a year for auto insurance, while women pay $739 a year.
What types of drivers generally pay more for insurance?
Insuring new drivers is more expensive due to lack of driving experience. Younger drivers are more likely to get into accidents, which also drives up car insurance rates. New drivers can pay up to $3,000 a year or more for car insurance, depending on the company.
Do males pay more for car insurance?
Women tend to pay less for car insurance than men. And not surprisingly, young drivers pay the most. Age correlates with driving experience and the risk of being involved in a car accident. High auto insurance rates for young drivers start to drop at age 25.
What demographic usually has to pay higher auto insurance rates?
Young male drivers are the most expensive demographic to insure as they statistically pay the most money to car insurance companies. But the difference in costs between men and women narrows over time. After age 40, insuring women may even be slightly more expensive.
What types of drivers generally pay more for insurance?
Insuring new drivers is more expensive due to lack of driving experience. Younger drivers are more likely to get into accidents, which also drives up car insurance rates. New drivers can pay up to $3,000 a year or more for car insurance, depending on the company.
What factors influence the rate someone pays for their car insurance?
What factors are most important in car insurance rates?
- Age. Age is a very important assessment factor, especially for young drivers. …
- Driving history. This rating factor is simple. …
- Credit score. …
- Years of driving experience. …
- Location. …
- Sex. …
- Insurance history. …
- Annual mileage.
What drives the cost of insurance?
The most common reasons for high car insurance costs are your driving record, age, coverage options, where you live, the car you drive, your credit history or not using discounts. The average car insurance premium has also become more expensive, having increased by more than 50% in the last 10 years.
Which drivers have the highest insurance rates?
Michigan, Florida, Rhode Island, Delaware, and Nevada have the most expensive auto insurance rates. Drivers in these states have the highest auto insurance premiums in the country, although the reasons for these rates vary from state to state.
Does credit score affect car insurance?
A higher credit score will lower your auto insurance rate, often significantly, with almost all companies and most states. However, getting a quote does not affect your credit. Your credit score is an important part of determining the rate you will pay for car insurance.
What is a good credit score for car insurance? A good insurance score is around 700 or higher, although this varies from company to company. You can improve your auto insurance score by checking your credit reports for errors, managing your credit responsibly, and building a long credit history.
Do all car insurance companies check credit?
All major auto insurance companies, including GEICO, Progressive and State Farm, do a credit check during the offer process. In fact, credit is one of the main rating factors that insurers use to determine auto insurance rates.
Do insurance companies go by your credit?
Most insurance companies that use credit information take this into account when determining your interest rate. For example, someone with a relatively high credit score may pay a lower premium than someone with a relatively low credit score.
Can you be denied car insurance due to your credit history?
The good news is that in states that allow your credit score to be used to determine your eligibility for auto insurance, it usually can’t be the only reason to deny coverage. But your credit score can affect your insurance costs.
Do insurance companies do a hard credit check?
No, there is no “hard credit pull” when getting a car insurance quote – so shopping around will not affect your credit score. A credit pull usually occurs when you apply for a loan, such as a mortgage or credit card.
Does insurance look at your credit score?
Insurance companies check your credit score to assess the risk they will take on insuring you. Research has shown that people with lower credit scores are likely to make more claims or have more expensive insurance claims, while people with higher credit scores make fewer.
Does progressive run a credit check for a quote?
Will a credit check at the time of the quote affect my credit rating? No. A progressive inquiry is only visible to you and the credit reporting agency. Other companies looking at your credit report won’t see the inquiry.
Do insurance companies do a credit check?
Most insurance companies that use credit information take this into account when determining your interest rate. For example, someone with a relatively high credit score may pay a lower premium than someone with a relatively low credit score.