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Is Car Insurance More Expensive for Women

Is Car Insurance More Expensive for Women?

Is Car Insurance More Expensive for Women
Orlando, Florida—Several studies in 2018 and 2017 revealed that women over 25, particularly those between 40 and 60, often pay more than men — not less — for auto insurance, all other rating criteria being equal. Now, there are a handful of states that have outlawed setting rates for automobile insurance based on gender. You might pay more for car insurance than an all-but-identical driver, simply because of your gender, but not the way you think.

In 2014 paper, “Understanding Insurance Anti-Discrimination Laws,” the author, Law School scholars from Michigan, Minnesota, and Texas— noted that state laws against insurance discrimination generally cover race, national origin, religion, sexual orientation, and genetics. The laws generally do allow factoring in gender, age, credit score, and ZIP code.

Also, an analysis by car-insurance comparison site The Zebra revealed that in 2018 women paid more for car insurance on average in 25 states (including Florida), while men paid more in 20 states and Washington DC.

 While men traditionally have paid more, particularly when they’re younger, recent studies show women pay more when they’re older. Female drivers often pay less than men, but there are exceptions. 

Rates fluctuate based on age, as well as the insurance company. Female drivers from age 16 to 24 pay, on average, around $500 less (15%) a year for car insurance compared to their male counterparts, according to a rate analysis conducted by
Insurance is based on risk. Men drive more than women. They’re more likely to get in accidents, get tickets, and get arrested for DUI. Men are also more likely to drive a car that’s more costly to insure.

Car insurance companies use many factors when creating rates:

Claims history and severity
Age (Teen drivers being) the riskiest age group to insure.
Place of residence
Credit score
Marital status
Type of vehicle
But, keep in mind, that insurance companies don’t weigh them all the same. Underwriting departments vary on how much importance they put on each.

Although there's no gold standard on how auto insurers set rates, there are a handful of factors that typically go into their decision, such as:
  1. Price —Original the cost of the car
  2. Size of the car
  3. If the car is foreign or domestic
  4. Is it on the high-theft list?
  5. What is the primary driver's driving record look like? 
  6. The driving experience of the primary driver
  7. Annual mileage
  8. Is there an anti-theft system?
  9. Where's the car garaged?
Gender-based price differences were dwarfed by overall price differences among companies. So as a woman, you might save hundreds of dollars a year with the cheapest insurer in your area – even if that insurer would originally charge your male counterpart less. The best thing you can do is to shop for insurance. Different companies have very different rates, and you can get a good deal by simply shopping around.

Good advice for shoppers of all genders

  • Compare quotes. Because pricing varies widely, get quotes from multiple companies to ensure you find your best deal.
  • Request a price match. Presented with a competitor’s quote, your insurer may offer a lower rate.
  • Be willing to change companies. Your current discounts may not beat the prices you could find elsewhere.
To discuss these and more tips for saving on your car insurance and request a rate comparison from different carriers, contact us directly at Orlando Insurance Center (407) 680-1214.



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