Young men pay 10% more for car insurance than young women before the age of 25, according to a WalletHub study. At age 25, insurance rates go down for both genders. But rates for men also start edging closer to those paid by women until age 40, by which time there is little or no difference for drivers with equivalent driving histories. From there, the tables may actually turn. A study by the Consumer Federation of America shows that women between the ages of 40 and 60 years old may pay more than men of the same age.
However, more men than women have certain risk factors in their personal driving histories that raise their rates. Even though insurance companies don’t apply these factors broadly to the entire gender, this raises the average rate for male drivers.
- Men are more likely than women to cause car accidents, according to the National Highway Traffic Safety Administration.
- Male drivers cause about 6.1 million accidents annually, while women are at fault in 4.4 million crashes per year.
- Speeding is more commonly a factor in fatal accidents involving men.
- Men are more than twice as likely to be arrested for a DUI, according to an FBI report.
- Men drive more cars that are costly to insure, like sportscars and luxury sedans.
Seven states, including California and Pennsylvania, have already banned the use of gender in setting car insurance premiums. More are considering similar laws. So, if you’re a man over the age of 25 with a high insurance premium, it probably isn’t due to gender bias. Look to your driving history and the car you drive for the most likely explanations. Location, annual mileage, marital status, and coverage levels could also be factors.
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