Is it true that women are charged less than men for car insurance?

Cathy

Well, Cathy, yes and no.

It is true that among younger drivers you can see big differences in the rates quoted for auto insurance, but as a driver gets older that difference fades. Some people take offense to these gender-based differences, but the truth is that car insurance companies are just that–companies–and for that reason they must charge higher-risk customers a higher premium.

Statistics show that males between the ages of 18 and 25 tend to get in more accidents and have more moving violations than female drivers. In addition to that, more men than women die each year in car accidents. Men practice risky driving more than women do, and are more likely to drive without a seatbelt or under the influence. At the same time, though, since 1970 there has been an actual increase in accidents involving women while there was a decrease in accidents involving men. This could, in time, lead to an evening out of the rates between genders.

Once you get past the age of 25, though, these statistics become more even. Men and women over 25 have similar rates of accidents and moving violations, so their prices are more even. So, Cathy, if you’re under the age of 25 you may, all else being equal, benefit from being a female driver. Older than that, though, and you’ll be getting the same rate treatment as males.

Sincerely,

Fashun Guadarrama.