By now you’ve probably heard that women pay less than men for auto insurance. This fact has created something of a micro-stir with some folks wondering out loud about issues like fairness and equality. So we figured we’d leverage our data here at CoverHound to look at the data behind these realities, and help explain the gender dynamics behind car insurance rates.
Car insurance quotes are a science, not an art. Rates are spit out based on actuarial data that has accumulated for decades. For example, someone with a DUI citation is much more likely to get into an accident while driving drunk than is a person who has never been ticketed — and will therefore pay more for coverage.
Along those same lines, women are given preferred rates for the simple fact that, generally speaking, they make fewer and smaller car insurance claims. In other words, over the life of a car insurance policy women request less money back from their carriers. And for this good reason they are charged less.
Then there is also the issue of how a woman’s car insurance rates change as she ages. It shouldn’t come as any surprise that younger people are a bit more adventuresome on the roads than the rest of the population. Accordingly, women under the age of 25 pay more for insurance than any other subset of the female population.
For the next 30 years, on average, car insurance rates for women fall 19%; the age of 55 is when women pay the very least. The data shows that people with children tend to drive more safely, which makes sense with so much riding in the back seat, hence the lower costs during the prime parenting years.
At the age of 55, though, rates for women start ticking upward slowly again until the age of 65. At that point, older Americans tend to get into more accidents and rates for women go up 19% for women, between the ages of 65 and 75.
This chart lays out the data pretty nicely.
So, yes, women do pay less than men do for car insurance — on average 12,000 few dollars per lifetime. But like those of their male brethren, female pockets are hit the hardest for the youngest and oldest drivers on the road.
Josh Anish is the Head Writer at CoverHound