Do Women Pay Less for Car Insurance?

You’ve probably heard this assertion before when it comes to health insurance, life insurance and yes, auto insurance: Women typically pay less than men for their policies. Is this true and if so, why?

According InsWeb, an online insurance comparison provider, women do pay an average 9% less than men do for their car insurance policies. Current national six-month averages for car insurance are $698 for women and $765 for men, according to the study.

The insurance industry isn't picking on men; it’s simply a numbers game. The rates are primarily based off the underwriting policies that many leading auto insurance companies use. Each auto insurer assesses the risk for paying out future claims.

For example, men are 50% more likely to have a DUI or DWI on their driving record than women. Women are also 10% less likely to have a moving violation on their driving record. Women typically have cheaper vehicles than men. On average, women’s vehicles are valued at 8% less than a men’s cars nationally ($22,815 vs. $24,861, respectively). When women are the primary drivers on a policy, they are less likely than men to have multiple drivers or multiple vehicles listed on a policy. All of these factors feed into costlier premiums regardless if you’re a man or women.

It just so happens men are riskier bets for insurers than women. To find out how much insurance costs for a man or women in your state — and state premiums vary drastically — check out the complete graph from InsWeb below.

State

Median Rate: Women

Median Rate: Men

% Difference

Ranking

Wyoming

$495

$621

20.3%

1

Washington D.C.

$791

$942

16.0%

2

South Dakota

$578

$687

15.8%

3

Arkansas

$585

$680

14.0%

4

Idaho

$458

$532

14.0%

5

Alaska

$775

$896

13.5%

6

Mississippi

$775

$869

13.2%

7

Louisiana

$1164

$1314

11.4%

8

Minnesota

$532

$594

10.4%

9

California

$816

$910

10.3%

10

Maine

$472

$526

10.2%

11

Nebraska

$527

$587

10.2%

12

Georgia

$778

$862

9.7%

13

Tennessee

$565

$625

9.6%

14

Washington

$596

$659

9.6%

15

Texas

$722

$799

9.6%

16

New York

$1013

$1119

9.5%

17

South Carolina

$583

$644

9.4%

18

Florida

$798

$879

9.2%

19

Alabama

$646

$711

9.2%

20

New Hampshire

$561

$617

9.1%

21

Delaware

$736

$807

8.8%

22

Ohio

$537

$587

8.5%

23

Illinois

$674

$737

8.5%

24

Arizona

$861

$937

8.1%

25

North Carolina

$477

$519

8.1%

26

Oregon

$563

$612

8.0%

27

Kansas

$608

$661

8.0%

28

Kentucky

$725

$787

7.8%

29

Virginia

$557

$604

7.8%

30

Colorado

$770

$832

7.5%

31

Vermont

$501

$541

7.4%

32

Missouri

$705

$759

7.2%

33

New Mexico

$735

$790

7.1%

34

Connecticut

$862

$927

7.0%

35

Rhode Island

$866

$931

7.0%

36

Utah

$550

$591

6.9%

37

Pennsylvania

$574

$615

6.7%

38

Wisconsin

$551

$590

6.7%

39

Indiana

$560

$595

5.9%

40

West Virginia

$676

$716

5.7%

41

Oklahoma

$801

$842

4.9%

42

Maryland

$854

$897

4.7%

43

North Dakota

$525

$550

4.5%

44

New Jersey

$699

$732

4.9%

45

Massachusetts

$498

$519

4.1%

46

Nevada

$886

$912

2.9%

47

Michigan

$720

$741

2.8%

48

Hawaii

$599

$607

1.3%

49

Montana

$690

$698

1.1%

50

Iowa

$544

$533

-1.9%

51

By Colin Bird | September 22, 2010 | Comments (21)
Tags: Safety

Comments 

As a woman I truly believe in complete equality, meaning women should be held to the same standards of men (including paying on dates) etc but I guess insurance works differently because its based on risk and who is more likely to be at risk for an accident. I also think that it's NOT a good thing that women's cars on average cost less than a man's because that means that we have a long way to go salary wise, or it could be that most women don't care if they drive a nice car. (I am not one of those btw, my car costs a lot more than the average man's car of 24k)

Bert

"I also think that it's NOT a good thing that women's cars on average cost less than a man's because that means that we have a long way to go salary wise..."

Sugar take your ignorant comments and make your way over to MotherProof where you belong.

Tony

Bert,

I think you getting fuller and fuller of that stuff, you know.
Make an argument, don't tell people what they should do and where they should go.
where do you come from?

Note to editor:
Bert has no productive posts but rather insulting ones. Get him outta here.

Tony,
As off putting as Bert's comment is and it does go against our posting rules to basically "be nice" he has not posted many comments to the site and none like this before. So I'll give him a pass this time.

Tony

Now, back to the argument...

Women should not whine about having average car cheaper than man's. Because when I go to work every morning, I see about 10-15 women walking around with their dogs while their men working.

Then, may be in average women are safer - ok. But sober to sober women are not even close to man in safety. We have a bottleneck road where "hit from behind" accidents happen almost daily. I see majority of the rear car drivers are women. Today we had 3 separate crashes with 7 cars. I saw 2 men, one of them was a cop.

Eric

Fact of the matter is women don't on average drive as many miles as men. It's just good business to charge men more and women less.

qdp

In my view, usually males are driving more agressively while lady drivers are too relaxed to be responsive. However we insureance companies set insurance premium based on their statistics, rather than on how logically or effectively we argue about it. So....

GV

Tony,
I don't find your posts to be "productive" should I ask the Editor to remove you from the board? See if you can refrain from being a sissy from here on out.

Gary V.

nice information..... m glad to find i must take advantage of it...

Actually, female rates are quite a bit lower than male rates in the 16-19 age bracket.
At 20-25 the gap eases up a bit. And rates level out a bit over age 25.
In my case, I was the good driver and my sisters? Well...you don't want to know!

Tony

GV,

The editor thinks I war right. Any other comments?

Eric and Tony,

I am the initial poster who posted about how we have a long way to go since womens cars cost less. About women driving less than men, I commute to work and drive around 40 miles a day (20 miles each way). QDP, I'm not a relaxed driver, I'm a very aggressive driver, probably a lot worse than most men, especially in the mornings. If you were in front of me and driving slow in the fast line, I would probably tailgate you until you yielded or I would pass etc. I switch lanes like a maniac when driving. I'm not proud of it, just saying that not all women are passive on the road.
I don't know where you live Tony, but women in SoCal (where I live) go to work all the time. I've never had a man support me.

Tony

I10 Toyota,

I never said that there are no women, who can drive fast and aggressive.
I only said, that one of the reason's why women have average car cheaper then men is because there are housewives who either has car registered on their man's name or don't make enough income because one person works, to by nicer cars.

And BTW. If I would drive in the left lane and there are cars in font of me and you would tailgate me... you wouldn't go anywhere fast. I would make you miserable, I would squeeze your any gimps of passing me. You would cry like a woman.

Jason Reece

The insurance industry is allowed to discriminate because "the data supports it"...allegedly. Of course, when pressed for concrete proof of said proof, they refuse because the information is proprietary! I don't dispute the fact that there are some factors that make certain drivers or groups of drivers a higher risk. Obviously, the higher the risk, the more they pay for insurance, which seems totally logical and fair.

But some factors used to determine "risk" aren't fair. One example is credit history- insurers claim that a driver with less-than-good credit is more likely to file a claim and/or drive carelessly. Married folks pay less than those who are single or divorced...although most insurance companies now recognize domestic partnerships and give them the same discounts as those who are married.

Home ownership, occupation, education level are also used by some companies to determine rates.

For newer drivers with less than five or six years of driving history, I can (sorta) understand using some of these factors to determine risk. But is a driver with 20+ years of history, no claims and no traffic violations a higher risk simply because they have credit issues? After 10 years of driving experience, they should only be able to use claims history and MVR to determine rates! Practical factors such as miles driven daily, how the vehicle is used, location where it is parked at night and the claims history of the vehicle make/model are logical risk factors to use as well. But gender, credit history, marital status, occupation and other personal differences should NOT trump a long-term, safe driving history!!!

Jason Reece

I10 Toyota- all SoCal drivers are insanely aggressive!!! I have lived in the Atlanta area all of my life and I thought drivers here were bad...but I visited my cousin in L.A. back in July and very quickly discovered that the only way to drive in L.A. is very aggressively! If you signal lane changes, cars will speed up to block you. Merging onto the freeway is a game of "chicken". Proper following distance is less than two feet behind the car in front of you, even at 80mph!

I'm used to zipping in and out of traffic in Atlanta and I drive a Mazda3 for that very purpose. I can turn, change lanes and stop faster than 99% of the other cars around me. But in L.A. I was driving my cousin's 2007 Lexus GX 470, which is the antithesis of nimble! But after a few days, I learned to use it's size and V8 power to fight back! After a week, I was fairly comfortable driving anywhere.

The only thing that I still don't understand and hate about driving in L.A. is the lack of LEFT TURN arrows on traffic signals??? Making a left across several lanes of flying traffic was nerve-wracking! I don't see how a slow car (Chevy Aveo automatic, for example) could ever make a left turn and not get hit...I had flashbacks to my playing Frogger on my Atari when I was a kid! =)

Tony

I want to apologize to everyone for my posts.

It’s hard to find knowledgeable writers on this topic, but you seem like you know what you’re talking about! Thanks.

Car Insurance

I do women pay less and I've always and wrongly accused insurance companies for favoring women drivers for it. But this is because I didn't know this much study went to determining the factors. I guess it's far after all, according to the data. I guess I’m fine with it if some women actually end up paying more than some men. It shows that it's authentic. I don't have minimal power of where I live and how much I drive, but I can really work on how I drive to lower my rate I guess. And the car I drive too.

I always thought there was a difference in the amount women and men pay, but I never knew it was so large. Thanks for the info

What a large discrepency, I never knew men paid so much more.

You mean there’s finally proof that women are better drivers than men on an average? Whoa! If men take driver safety classes, they might have to pay the same insurance as women, thanks to the accompanying discounts!

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