Who pays more for auto insurance, men or women? Let's break down car insurance rates by gender.
For most drivers, male and female car insurance rates are very similar: women pay $1,434 per year versus the $1,427 paid by men, on average. For young drivers, however, it's a different story. Men under the age of 25 pay an average of 10% more per year for car insurance than do women in the same age bracket. We'll explore the reasoning behind this discrepancy and review some easy ways to save when shopping for your next policy.
Gender aside, young drivers face high car insurance premiums. Insurance companies consider young drivers more likely to take risks, drive dangerously, and file claims. These tendencies make young drivers more expensive insurance clients. As a driver ages, their auto insurance rates typically drop accordingly.
|Age||Average Annual Premium||% Difference — Male vs. Female|
The average female teen driver pays 13% less for car insurance than does her male counterpart. Auto insurance companies rely on historical data that shows young male drivers get into more accidents, file more claims, and receive more tickets tickets than do young female drivers. Insurers account for this additional risk by increasing young male drivers' premiums.
After the age of 25, the difference between men's and women’s car insurance premiums is basically a rounding error. On average, women paid approximately 1% more than did men in the same age group in 2017. The data insurance companies rely upon show women to pose a slightly greater risk than male drivers.
|Gender||Average Annual Premium||% Difference|
This data is a nationwide average. Hawaii, Massachusetts, and Montana do not use gender as a rating factor for car insurance premiums. However, Nevada women still pay nearly 6% more for car insurance than do the state's male drivers.
Although women paid more in 2017, data from 2016 showed men were actually paying higher premiums. In 2016, national averages showed men paid about .05% more than women for car insurance. For drivers over the age of 25 the difference between car insurance premium for men and women is insignificant.
No matter your gender, saving money on car insurance is a must. Let’s outline some basic ways to save on your car insurance premiums.
If you’re involved in an at-fault accident and are considering a collision claim, think about the numbers. On average, an at-fault accident will lift your insurance premiums by 48%. Most insurance claims and violations will stay on your record for three years, meaning you'll be on the hook for higher rates for three years.
|Increase at 6 months||Increase at 12 months||Increase at 3 Years|
Sometimes it makes sense to file a claim. Here’s how to tell:
Vehicles have an unfortunate habit of depreciating quickly. What that means for your car insurance is that the collision and comprehensive coverage you had on your 2009 Civic might not be necessary today. As a general rule, if your vehicle is worth less than $4,000, you no longer need this optional coverage.
If your vehicle is worth more than $4,000 but you're looking for ways to save, consider raising your deductibles. By raising your deductible, you can lower your premium.
|Coverage Level||Average Annual Premium|
While the below discounts are small, they add up. Contact your current car insurance company to assess your eligibility for the following discounts and programs:
At the end of the day, adding up discounts can only do so much. Sometimes you’re paying too much for car insurance because you’re with the wrong company. Your best bet for finding cheap car insurance options is to see what else is available to you.
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