Why Do Women Pay More For Car Insurance When Statistically Men Are Riskier Drivers?

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Your car insurance quote should, theoretically, be based on how much much your insurance provider considers you as a potential “risk”. However, it turns out that in some states your gender affects your insurance rate more than your actual risk factor.

The Zebra reported that women pay more for car insurance in 25 states, despite the fact that men are statistically more likely to engage in accidents due to risky driving behavior. And, to make things worse, the disparity is a recent phenomenon. Men paid more for car insurance in 33 states just two years ago, and now women pay, on average, $10 more than men for their car insurance premiums.

The largest gap was in the state of Nevada, where women pay $121 more per year for car insurance. However, back in 2016, females from Nevada paid only $14 more per year than men. So, what changed since 2016?

Also, the disparity doesn’t seem to be risk related, because men are more likely to be riskier drivers, especially young men.

The Insurance Institute for Highway Safety Highway Loss Data Institute stated that men typically drive more miles than women, so they often engage in risky driving practices including speeding, DUI, and not using safety belts.

The practice of gender-based pricing has been banned in six states so far: Hawaii, Massachusetts, Pennsylvania, North Carolina, Montana, and California.

The change in costs is surprising because, historically, men had paid more than women for car insurance, and most studies point out that men are the more dangerous drivers.

So, if gender-based pricing exists (and it shouldn’t!), women should actually benefit since they are a lower risk.