I still remember obtaining my driver’s license at sixteen years of age and being furious that my sister’s car insurance was less expensive than mine. Car insurance is cheaper for women across the board, which didn’t seem fair, since I was a well-behaved kid with no history of poor judgment.
The reason for this is simple, according to Autos.com: Women cost insurance companies less in the way of accidents and other claims, so men have to pay more to insure their cars. It is not a personal slight, but a calculated move on the part of the insurers to protect their liability.
Car accident statistics vary from year to year, and in many cases, men and women are neck-and-neck with regard to the number of accidents in which they are involved. The discrepancy is in the severity of those accidents; car insurance is cheaper for women because women cause less damage, to be blunt.
Statistically, men are more likely than women to drive fast and recklessly, which means they get in serious accidents that result in high-dollar damage. Women, on the other hand, are more likely to find themselves in fender-benders that cost considerably less to prepare.
It is also true that, in the past, men have been more likely to get in alcohol-related accidents on the road, as male DUIs are typically higher. This results in cheaper car insurance for women because they are considered less likely to get behind the wheel while intoxicated. However, recent studies, including one conducted by Washington State University, suggest that women are just as likely to get DUIs, and that the difference between the sexes with regard to drinking and driving is narrowing.
It is possible that, over time, car insurance will no longer be cheaper for women. Until then, however, men are considered higher risks behind the wheel, regardless of other circumstances.
Remember that car insurance companies are in the business if risk assessment. When they hand over a policy, they want to know the potential for losses down the line. Without a crystal ball to guide them, auto insurance providers rely on statistics and actuarial data to assess the risk of any given customer.
Car insurance is cheaper for women, according to Autos.com, to the tune of 10 percent or more. This means that if you are a man, you will pay around 10 percent more for the same policy with identical specifics.
The good news, however, is that the degree to which car insurance is cheaper for women will decrease as you get older. Men with long histories of safe, cautious driving will earn discounts from their insurance providers and therefore pay less as time goes on. Refraining from reckless driving, speeding tickets, DUIs, accidents and other citations will earn you credibility with the car insurance company.
Sources:
“Car Insurance Rates: Men Vs. Women,” Autos.com.
Jennifer Schwartz, “Gender Difference in Drunk Driving Prevalence Rates and Trends,” Washington State University.
