Car Insurance Rates For Women

Car Insurance Rates For Women

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated December 8, 2021

Could you be receiving a different insurance rate premium on your car just because of your gender? Do men and women actually receive different quotes? And if so, is that even allowed or fair?

Sure, people get different rate quotes based on their age and sometimes even their postal code. And that makes sense: younger people who are more impulsive and have less experience on the road would certainly be considered more of a risk compared to an older individual with a much longer track record of driving responsibility.

But what about gender? Do car insurance providers give women a different rate than men?

Learn how to save money on your car insurance, click here

Are Insurance Providers Allowed To Provider Cheaper Insurance to Women?

Believe it or not, gender is a factor that insurance providers consider when determining car insurance premiums, and they’re allowed to do so because of certain statistics.

According to research that insurers conduct in order to come up with their insurance premiums to different demographics, women tend to drive less compared to men. That alone is a big factor to consider. If they’re on the road less, the odds of an accident are also lower.

But aside from that, there are three areas where women tend to fare better than men when it comes to driving on the roads:

Speeding – Men usually take more risks on the road, and that includes going over the speed limit. A history of speeding fines plays a role in the type of insurance rates people get, and with a track record of plenty of speeding offenses, rates will be higher. According to the National Highway Traffic Safety Administration, fatalities on the road resulting from speeding are more likely to be a factor for men compared to women.

Accidents – According to the National Association of Insurance Commissioners, women are less likely to be involved in an accident on the road. As such, insurers are more likely to give women a slightly lower rate for car insurance. Not only that, but women are even more likely to wear a seatbelt when driving, which puts them at less at risk of serious injury. Safe driving plays a key role in insurance rates, so a safer history will usually result in a lower rate, regardless of gender.

Do you know what the distracted driving laws are in your province? Find out here.

DUIs – If you’ve been charged with a DUI in the past, your insurance premium will be seriously affected. Statistics show that men tend to be arrested more often as a result of driving under the influence compared to women, which is factored into a person’s insurance premium

Men generally take more risks while on the road, which can lead to speeding, accidents, and even DUIs. Insurance providers use risk levels to determine their insurance premium rates, and since men are more likely to be guilty of the above three offenses more often than women, their rates could be slightly higher.

Having said that, the rates between men and women tend to even out somewhat by middle age, as men’s appetite for risk usually relaxes by then. The rate differences are usually much greater under the age of 25 years.

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Other Factors That Affect The Cost of Car Insurance

Aside from gender, what other factors play a role in auto insurance premium rates?

  • Age
  • Location
  • Driving history
  • Years of experience on the road
  • Credit score
  • Type of vehicle
  • Length of commute
  • Where the vehicle is parked
  • Insurance history
  • Marital status
  • Claims history
  • Coverage level
  • Type of vehicle
  • Vehicle ownership status
  • Discounts

Clearly, it’s not just gender that impacts the type of rate you’ll be given.

What your auto insurance provider doesn’t want you to know, check out this article

Different Provider, Different Rates

As you may have suspected, different insurance providers will charge different rates. Anytime you go shopping for consumer products, you may have noticed that the same product may be cheaper at one store compared to another. That’s why it’s always smart to shop around and compare different prices at different stores to make sure you get the best price for the same product.

The same can be said for insurance providers. While gender is certainly a determining factor when it comes to the cost of auto insurance, a bigger factor is the insurance company that you choose. Rates vary quite a bit from one company to the next, and although the rating factors that combine to make up your driver profile can increase your premiums, some insurance providers simply charge much higher rates than others.

If you don’t take the time to do some comparison shopping, you could be paying way too much in car insurance without even realizing it. By shopping around, you may be able to find a much lower rate and keep more money in your pocket.

Regardless of whether you’re a man or woman, it’s always important to compare several providers to get the best rate. While cost is important, make sure you’re are also comfortable with the provider and that all other aspects of your plan work for your particular needs.

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Options to Help Both Men and Women Lower Their Rates

It’s not fun to have to dish out more money every month to pay for auto insurance in addition to all the other bills you have to pay. Considering this, it makes sense to make an effort to ensure that your rates are as low as they can be. Here are a few tips to help you do just that:

Inquire about discounts – Just about all insurance providers offer several different types of discounts for various reasons. For instance, there are discounts for anti-theft devices, completed driver training courses, accident-free driving records, early policy renewal, homeowners, military personnel, seniors, and low mileage. Ask about the types of discounts offered to see if you qualify for any of them.

Take a higher deductible – A deductible is the amount you will have to pay out of pocket for repairs before your insurance plan kicks in. For instance, a $1,000 deductible means you would pay the first $1,000, after which your policy takes effect and covers you for any remaining costs. Usually, higher deductibles mean cheaper rates and vice versa. If you feel that you won’t be making many claims, a higher deductible might be worth it to pay lower premiums.

Make sure your car isn’t expensive to insure – Luxury cars tend to come with higher insurance premiums. If you want to keep your rates low, consider buying a vehicle that isn’t on the list of higher-insured vehicles. On average, models such as Honda CR-Vs and Subaru Outbacks tend to be the cheapest to insure.

5 insurance mistakes all consumers should try to avoid, click here

Final Thoughts

You can’t avoid paying car insurance. It’s the law, even though every province can determine the minimum amounts necessary. But if you ever find yourself the victim of an accident or auto theft, auto insurance can certainly come in handy.

But just because you need it doesn’t mean you should pay more for it than necessary, whether you’re a man or a woman. Be sure to shop around with different providers to see where you can land the lowest rate.

Rating of 3/5 based on 2 votes.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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