Women now pay more than men for car insurance in 25 states (despite men being riskier)

Key Finding 1

Women Pay More Than Men For Car Insurance in 25 States

Nationally, women’s average annual car insurance premiums* were about $10 higher than men’s in 2018. Women paid more than men for car insurance in 25 states, while men paid more than women for car insurance in 21 states.

Key Finding 2

Men Exhibit Riskier Driving Behavior

Our analysis shows that car insurance costs are shifting broadly for women in many states — but it’s unclear what’s causing this change.

If women’s car insurance costs are going up, it suggests insurance companies are finding that women are riskier to insure (they’re filing more claims — or those claims are more expensive). Yet, according to IIHS, “Men typically drive more miles than women and more often engage in risky driving practices including not using safety belts, driving while impaired by alcohol, and speeding. Crashes involving male drivers often are more severe than those involving female drivers.”

A closer look at the numbers shows:

– Men accounted for 71% of driver fatalities in crashes in 2017, according to IIHS.[2] 

– Men and women engage in distracted driving at the same rates, according to California’s Department of Insurance. Insurers in the state identified distracted driving as “one of the primary drivers of increased accident frequency and severity.”^[1]

– In 2017, alcohol-impaired drivers were involved in one-third of all fatal car crashes — and most of those drivers were men. According to NHTSA, there were four male alcohol-impaired drivers involved in fatal crashes for every female alcohol-impaired driver (8,022 versus 1,944).^[3]

– Speeding was a factor in 28% of male driver deaths and 18% of female driver deaths in 2017, according to IIHS.^[2] 

– While most studies show men more often exhibit risky driving behaviors, a 2011 study by the University of Michigan showed that women were more likely to be involved in certain types of crashes, especially when turning at intersections.^[4]

Key Finding 3

Is Gender Still Relevant in Car Insurance Pricing?

While 45 states still allow price differences between men’s and women’s car insurance, the practice has become increasingly controversial. 

Who’s for it?

Car insurance companies have generally argued in favor of keeping gender as a rating factor because, they say, it helps them more accurately price risk. 

Insurers consider gender in combination with many other risk factors (like what kind of car you drive and your years of driving experience) when pricing insurance.When states prohibit rating factors like gender, it doesn’t mean the extra cost insurers charge certain groups disappears. It just gets distributed in a different way. 

In California, for example, Department of Insurance analysis shows that eliminating gender could give the riskiest group — young male drivers with fewer than three years of driving experience — a 5 percent break on their insurance costs while less-risky young female drivers could end up paying more.

Who’s against it?

Consumer advocates, however, have become increasingly vocal about the cost disparities highlighted in this report and by previous consumer studies. They argue that if gender were strongly tied to how likely men and women are to file a claim, we’d see more consistency across insurers and locations. They say that wildly varying rates are unfair and that it’s time for men and women to pay the same.

Consumers concerned about the impact of their gender on their car insurance costs can shop around for an insurance company that doesn’t consider gender when setting rates — or one that rates their gender more favorably. 

Industry trade groups have disputed previous consumer studies showing that women are charged more than men, but they have not shared alternate data or explained why female drivers may see higher prices in some states.^[5]