How Your Gender Affects What You Pay for Car Insurance
There is an urban legend about auto insurance rates in California that has a kernel of truth to it. Would it surprise you to learn that, if you are a male, you are likely paying more for a comparable auto insurance policy when compared to females?
If you are a male or the parent of one who will be getting his driver’s license soon, you might find this unfair. It is, however, based on historical evidence and statistics that highlight the fact that men tend to be riskier to cover, and they make larger claims when compared to women.
Key Factors in Determining California Auto Insurance Rates
Though it might seem discriminatory, insurance companies rely on statistics when figuring their chances of incurring a loss when they insure someone. Some of the key factors they consider when pricing an auto insurance policy, besides your gender, are the age of the driver, the make, your marital status, the model and year of your vehicle, your driving record, and your credit history.
The Gap Is Significant
According to a study by the Centers for Disease Control and Prevention (CDC), a single male driver pays an average of about 21 percent more in auto insurance premiums than a single female of the same age. The good thing is that this disparity in rates is not permanent. It begins to level off as a male ages.
For example, the study found that, by the age of 25, males paid only an average of four percent more for a comparable auto insurance policy compared to a female who is also 25.
Why Are Males Statistically More Expensive to Insure?
According to statistics, males engage in riskier driving behavior, such as driving under the influence of drugs and/or alcohol, driving over the speed limit, or driving in an aggressive or reckless manner.
Males also tend to drive a higher average number of miles. Statistically, men also have more accidents when compared to women. The types of vehicles chosen by men also are often more expensive to insure.
Age Among Insured Males Matters as Well
Even among males, there is a significant difference in the amounts they pay for car insurance. For example, a 20-year-old man who is single will pay an average of about 25 percent more for a similar auto insurance policy when compared to a 20-year-old man who is married. By the time those same two men are both 25 years old, though, the gap between what they pay for auto insurance has scaled back to only a seven percent difference.
Auto Insurance Rates Continue to Plummet as Males Age
The auto insurance rates in California for males continue to drop with a 40-year-old male paying about 41 percent less than a 20-year-old. Premiums start to stabilize at around the age of 60, with an average premium difference of about 59 percent when compared with a 20-year-old male.
Need insurance in California? Breathe Easy Insurance wants to help. Contact us today to speak with an Agent who can best assess your needs—regardless of gender!