The disparities between men and women in the American economy has been a point of contention for decades, from the wage gap to corporate executive positions and more. One such disparity — the difference between how much men and women pay for auto insurance — has recently shifted, with bigger changes likely on the horizon. So what caused this change, is it justified, and what, if anything, can be done about it?
How Much More Do Women Pay?
Although traditionally men have paid more for their auto insurance, a recent study by Susan Meyer at insurance comparison platform The Zebra shows that women now pay up to $118 more per year than men, even if they have no blemishes on their driving record: Says Meyer:
And while the national average shows women paying just 0.4% more than men, a female driver can pay a lot more than a man her age, depending on how old she is and where she lives. In Louisiana, for example, women in their fifties pay $118, or 5.6%, more than men their age. In Oregon, women in their thirties pay 6.5% ($91) more than men of the same age, and women in their forties pay 7.6% ($104) more.
Of course, premiums differ due to a number of factors besides gender: age, driving record, credit rating, marital status, choice of vehicle, place of residence, and any number of other elements that play a part in how much an individual pays for their car insurance. But the question remains: is this particular disparity justified?
Is This Fair?
According to this report, women are paying more than men for their car insurance in 25 states—but should they be? At first glance, the statistics say no.
First of all, men are demonstrably riskier drivers than women are by a number of metrics — men account for 68-70% of driver crashes, and 79% of drunk drivers involved in fatal crashes are male. Similarly, around the same percentage of speeding-related fatalities happen with a man behind the wheel.
Age is also a factor in car insurance premiums. While they tend to be higher-risk at any age, young men ages 16-25 pay more for car insurance than females their same age — but as women move into middle age, that balance shifts and women begin to pay more.
Why Do Women Pay More?
So why exactly is this happening? Does it make logical sense for a woman to pay more for their car insurance when they’re less risk-prone at every stage of life than men are?
One possible reason for this disparity is the difference in injury statistics. Men are responsible for most accidents behind the wheel, as well as fatalities, but women are 37-73% more prone to be injured in car accidents. Although fatalities are undoubtedly more tragic, injuries carry more risk from an actuary’s point of view, as they might incur significant healthcare expenses, thus dramatically driving up the cost of an accident claim.
Women also tend to drive more lightweight vehicles than men (who frequently favor large trucks). Lighter vehicles can often cause more injuries in a crash situation, which can further drive up the likelihood of a female driver incurring a serious injury.
All the same, is this fair? Many consumer advocates say it’s not, and several states agree. In states like California, Hawaii, and Massachusetts, the use of gender as a factor in determining auto insurance premiums has been banned outright, and other states may soon follow suit.
How Women Can Save Money on Car Insurance
The day may come when gender ceases to be a factor altogether in determining insurance rates — but what can women do to find cheap car insurance in the meantime?
One time-honored strategy is shopping around to compare auto insurance quotes. Comparison shopping is a great way to find lower prices. It used to be that you had to call or email several different insurance companies to get results — but there are now tools online where you can get free auto insurance quotes with a few clicks.
If you’re not looking to switch car insurance companies right now, you might also consider talking to your existing insurer and inquiring about discounts. You may be eligible for a variety of discounts for different criteria, such as:
- A good driving record
- Being a good student
- Having a certain occupation, such as healthcare worker or teacher
- Being a veteran of the armed forces
- Installing a telematics device on your car
- Opting for a low-mileage insurance policy
- Taking a defensive driving course
- and more.
You could also take steps such as reducing your deductible, which will lower your monthly premiums — although you will be on the hook for more cash if you do happen to get in an accident.You can also lower your risk of car theft or injury by installing anti-theft devices or extra safety equipment on your car.
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