It’s a common question in the world of auto insurance: do men or women actually pay more for coverage? A recent analysis by LendingTree dug into the data to find out, and the results might surprise you. While conventional wisdom might suggest one gender consistently pays more, the reality is far more nuanced and varies significantly depending on where you live. This comprehensive look into car insurance premiums by gender reveals some interesting trends across the United States, shedding light on Which Gender Pays More For Car Insurance and why.
Key Findings: Gender Disparities in Car Insurance Premiums
The LendingTree study uncovered several key points regarding gender and car insurance costs:
- In a majority of states, women face higher car insurance premiums than men. Across 37 states, women are paying more annually. Nationally, this averages out to women paying approximately $32 more per year than men. The most significant disparities are seen in states like Florida, Oregon, and Delaware, where the difference reaches into the triple digits.
- Men, however, do pay more in a smaller number of states. Seven states see men paying higher premiums, with Wyoming showing the largest gap, followed by Vermont and Ohio.
- Interestingly, incident rates for drivers vary by gender and state. In 2023, women in Massachusetts showed a notably higher incident rate compared to men, while in Hawaii, male drivers had a higher incident rate.
- Michigan stands out as the state with the highest overall car insurance costs for both genders. Both men and women in Michigan are paying an average of $3,814 annually.
- For teen drivers, the trend reverses. Nationally, male teen drivers are paying significantly more for car insurance than their female counterparts, averaging $504 more per year.
Why Do Women Often Pay More for Car Insurance?
The analysis, based on data from Quadrant Information Services, examined average car insurance premiums for both minimum and full coverage policies for 35-year-old drivers with clean driving records. It revealed that in those 37 states where women pay more, the difference, while nationally averaging a modest $32 annually ($1,488 for women versus $1,456 for men), can become substantial at the state level. Florida leads the way with a $199 annual difference, with Oregon and Delaware following with $130 and $118 respectively. In six states, women are paying over $100 more on average each year.
Alt text: Chart showing states with the largest car insurance premium differences between men and women, highlighting Florida, Oregon, and Delaware.
Rob Bhatt, a licensed insurance agent and car insurance expert at LendingTree, explains that the core reason behind these pricing differences lies in how insurance companies assess risk. “Insurance companies employ actuaries to evaluate the risk level associated with various drivers based on a multitude of factors,” Bhatt states. “In most states, gender is among the factors used to determine your risk profile. The insurance providers in these 37 states likely argue their data indicates women file more claims than men, justifying higher rates for women.”
Conversely, men are charged more in only seven states, and the premium gap in these instances is generally smaller. Wyoming shows the largest difference with men paying $31 more, while Vermont and Ohio follow with a $27 difference. Notably, in seven states, men and women pay the same average amount for car insurance.
Diving Deeper: Incident Rates and Gender
To gain a more comprehensive understanding, the study further analyzed millions of insurance quotes from QuoteWizard by LendingTree from January to December 2023, calculating incident rates by gender. Driving incidents were defined as accidents, DUIs, speeding violations, and citations.
Massachusetts exhibits the most significant disparity in incident rates, with women experiencing 17.9 more incidents per 1,000 drivers than men in 2023. The District of Columbia and Rhode Island follow with the next largest discrepancies.
Alt text: Bar chart illustrating states with the largest incident rate discrepancies between female and male drivers, focusing on Massachusetts, District of Columbia, and Rhode Island.
Bhatt notes that in states where significant differences in crash rates exist between genders, the gender with higher rates can expect to pay more, provided state regulations permit gender-based pricing. However, he emphasizes that other factors often play a more crucial role, particularly for drivers over 30. “Credit scores, where allowed, and driving history often outweigh gender as determinants of insurance rates, especially as you age,” Bhatt adds.
It’s important to note that Massachusetts, despite having the highest incident rate disparity favoring men, is among the states that prohibit insurance companies from using gender as a pricing factor. This might explain why average car insurance rates are the same for both genders in Massachusetts, despite the incident rate gap.
The Most and Least Expensive States for Car Insurance by Gender
When examining the states with the highest car insurance costs overall, Michigan tops the list for both men and women, with an average annual premium of $3,814. This high cost is largely attributed to Michigan’s no-fault insurance law, leading to substantial payouts, particularly for personal injury protection (PIP) claims, which are among the highest in the nation. Additionally, Michigan has stringent minimum insurance requirements, further driving up prices.
Florida ranks second highest for both genders, followed by Nevada.
Alt text: Table showing the states with the highest average annual car insurance premiums for both men and women, highlighting Michigan, Florida, and Nevada.
Conversely, Vermont offers the lowest car insurance rates for both genders, followed by Maine and Idaho.
Teen Drivers: A Reverse Trend
While adult women often pay slightly more for car insurance, teen male drivers face significantly higher premiums than teen females. Nationally, male teens pay an average of $4,755 annually, compared to $4,251 for female teens – a $504 difference.
Bhatt explains this disparity by pointing to risk factors: “Extensive research indicates that male teens are involved in fatal car accidents at a considerably higher rate than female teens. Insurance companies generally set higher rates for those with a greater likelihood of claims and lower rates for less risky drivers.” This principle extends beyond teens, as demonstrated in another LendingTree study revealing that Gen Z drivers (ages 18-26) have nearly double the incident rate of the next highest age group.
Alt text: Chart comparing car insurance premiums for teen male and female drivers, showing the largest differences in states like Connecticut, New York, and Maryland.
In 45 states, male teens pay more than female teens, with Connecticut exhibiting the largest gap ($1,386). Notably, female teens do not pay more than male teens in any state, and in six states, they pay the same amount on average.
Expert Tips to Lower Car Insurance Rates
When considering gender disparities in car insurance, it’s important to remember that a handful of states – California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania – prohibit gender as a factor in determining car insurance rates. While Montana previously had a ban, it was lifted in 2021.
Bhatt suggests that pressure exists in other states to reconsider gender-based pricing. In the meantime, his top recommendation for everyone seeking lower car insurance rates is to shop around. “Car insurance companies weigh rating factors differently,” he advises. “Some prioritize driving record or credit over gender, while others might be more lenient towards tickets or accidents, regardless of gender. Exploring different insurers and discounts, such as bundling car and home or renters insurance, can lead to significant savings.”
Methodology
This analysis utilized tens of millions of insurance quotes from QuoteWizard by LendingTree from January 1, 2023, to December 31, 2023. Incident rates per 1,000 drivers were calculated by gender and state, encompassing accidents, DUIs, speeding incidents, and citations. Insurance rate data from Quadrant Information Services, sourced from insurer filings, was used for premium comparisons and should be considered for comparative purposes only. Unless otherwise specified, rates for adult drivers represent averages for minimum and full coverage policies for 35-year-olds with clean records. Teen driver rates follow the same policy types for ages 15-19 with stand-alone policies.
