How Gender and Car Insurance Corelates: What You Need to Know

By Randy Luton | Last Updated: 04/29/2024

Car insurance can be a headache, right? A lot goes into figuring out how much you have to pay, and one thing you might not think about is gender. It turns out that gender can play a big role in your insurance costs. Let’s dig into how does gender affect car insurance rates.

Does Gender Matter for Car Insurance?

Insurance companies use all sorts of data to decide how much risk a driver is. One thing they look at is gender because it often lines up with different driving habits. Statistically, men tend to be more aggressive drivers, especially when they’re younger, and they get into more accidents. That makes insurers charge them more for car insurance, at least until they get older and mellow out a bit.

Where Does Gender Affect Insurance Costs?

Not every state lets insurers use gender to set rates, but some do, like Texas and Illinois. These states follow the traditional model, where gender helps calculate premiums. It means that if you’re a man in these states, you might end up paying more.

These are the states that are considering gender as a car insurance rating factor:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Dakota
  • Oregon
  • Ohio
  • Oklahoma
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Which States Ban Gender from Insurance Pricing?

Some places are moving toward more equal treatment by banning the use of gender in car insurance pricing.  

  • California
  • Hawaii
  • Massachusetts
  • Pennsylvania
  • Montana
  • Michigan
  • North Carolina  

are in this group. They aim for a more gender-neutral approach, meaning it doesn’t matter if you’re male or female when it comes to setting your rates. 

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Who Pays More for Car Insurance: Men or Women?

Generally, men pay a bit more for car insurance than women, especially when they’re younger. As they get older and have more experience, the difference in rates shrinks. It’s all about risk profiles, and younger men tend to be seen as riskier due to speeding, driving under the influence, and generally taking more risks on the road.

Why are Men’s Insurance Premiums Higher?

Men, especially young ones, often end up with higher premiums because they tend to drive more aggressively. They speed, drive without seat belts, and sometimes drive after drinking, which leads to more accidents. Insurers base their rates on statistics, so if men are getting into more accidents, it makes sense that they have to pay more.

Car Insurance for Transgender and Nonbinary Drivers?

For transgender and nonbinary people, insurance can be tricky. A gender-neutral policy is crucial to ensure everyone is treated fairly, regardless of how they identify. Some states are recognizing this need, offering policies that let people choose a gender option that fits their identity without affecting their rates.

How to Low Car Insurance Cost?

Buying car insurance doesn’t have to be costly. If you’re overwhelmed by the insurance quotes you’ve received, you can try different methods to save some money.

  • Bundle your policies. If you get other types of insurance, like home or renters, from the same company, you might get a lower rate by bundling them together.
  • If you drive less, some insurance providers offer discounts. A pay-per-mile policy might be a good option for you where you pay based on the miles you drive.
  • Increase your deductible. This is the amount you pay if something happens to your car. If you can afford to pay a higher deductible, your insurance premium will be lower. But make sure it’s a comfortable amount for you to pay out of pocket.
  • Look for discounts. Most insurance companies have discounts that can reduce your costs. You might get discounts for being a safe driver, having a car with good safety features, or even just for being a loyal customer. Ask your insurance provider about all the discounts they offer to see if you can save even more.

So, yeah, gender does play a role in car insurance, but it’s changing. As society becomes more open to gender equality, we’re seeing shifts in how insurance companies set rates. Some states are going gender-neutral, which is a step toward more fairness and inclusivity. This trend reflects broader changes in society, where diversity and equality are becoming more valued.

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Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

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Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.