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?
Key Points
- Men tend to pay higher rates on car insurance than women.
- Gender differences exist in the world of auto insurance due to differences in risk levels between men and women.
- Regardless of your gender, there are ways to keep your insurance rates low, such as keeping a clean driving record, taking advantage of discounts, choosing a higher deductible, and comparing quotes.
Can Insurance Providers Offer Cheaper Insurance To Women?
Several factors impact car insurance premiums, including gender. Insurers are allowed to charge more for men than women because of certain statistics.
Compared to women, men are more likely to:
- Drive over the speed limit
- Get into more accidents
- Have higher claim amounts
- Fail to obey traffic signs
- Fail to wear their seat belts
- Be involved in minor traffic infractions
- Fail to drive with proof of insurance
Insurance providers consider these factors when determining insurance premiums. Considering this, women are more likely to be charged lower premiums.
Learn more: Auto Insurance
Male Vs Female Insurance Rates In Canada
In Canada, male drivers typically pay roughly 5% more for car insurance than female drivers. As mentioned, this is due to statistics showing that men are more likely to be involved in riskier behaviour when driving compared to women.
For illustration purposes, the following chart lists the average annual car insurance premiums in Ontario between men and women, categorized by age group:
| Average Annual Premium For Male Drivers | Average Annual Premium For Female Drivers | |
| Age 20-25 | $2,939 | $2,634 |
| Age 26-29 | $2,634 | $2,395 |
| Age 30-35 | $2,541 | $2,299 |
| Age 39-39 | $2,425 | $2,196 |
| Age 40-49 | $2,170 | $2,054 |
| Age 50-59 | $1,911 | $1,747 |
| Age 60-69 | $1,635 | $1,412 |
| Age 70+ | $1,471 | $1,295 |
Other Factors That Affect The Cost of Car Insurance
Aside from gender, other key factors play a role in auto insurance premium rates, including the following:
- Age
- Location
- Driving history and experience
- Credit score
- Type of vehicle
- Length of commute
- Insurance history
- Marital status
- Claims history
- Coverage level
- Type of vehicle
- Discounts
Different Provider, Different Rates
Insurance premiums may also fluctuate based on the insurance provider. That’s why it’s always smart to shop around and compare different rates to make sure you get the best price.
If you don’t take the time to do some comparison shopping, you could be paying way too much for 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.
Tips To Keep Your Car Insurance Rates Low
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
Insurance providers typically offer 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
- Students
- Low mileage
- Bundled policies
Ask about the types of discounts offered to see if you qualify for any of them.
Opt For A Higher Deductible
A deductible is what you’ll pay out of pocket before coverage from your policy 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.
Choose A Less Expensive Vehicle 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.
Improve Your Credit Score
A higher credit score can lead to lower insurance premiums. Insurance providers view those with good credit as less risky. So, if your score is a little on the low side, consider taking steps to give it a boost to lower your rates on car insurance.
Learn more: Do Insurance Companies Check Credit In Canada?
Take A Safe Driving Course
Completing a safety driving course can help you qualify for discounts while helping you improve your safe driving skills.
Maintain A Clean Driving Record
A history of safe driving record with no accidents or traffic infractions can lower your auto insurance rates.
Compare Rates
Do some comparison shopping with different insurers to compare quotes and see where you can get the best deal.
Final Thoughts
You can’t avoid paying car insurance. It’s the law, even though every province can determine the minimum amounts necessary. Even though gender plays a role in the rate you’re offered, there are plenty of things you can do to keep your premiums as low as possible, including keeping a clean driving record and bundling policies with the same provider.
