Car insurance costs less for women. Why?

Drivers are constantly looking for ways to reduce their monthly payments. Some seek out safer vehicles, some pay their insurance in advance, and most try to avoid accidents at all costs. However, did you know that one of the biggest factors that determines the cost of car insurance is gender.

Women are likely to save on car insurance than men, according to recent studies. It is true men pay more for car insurance and as women, I’m certainly not complaining! It is interesting to think that we, as women, receive the better end of the deal. Does this reflect that we are better drivers overall? So why are women believed to be safer drivers? And how does this affect the insurance premiums of females behind the wheel?

Here are some reasons to ponder:

Fewer instances of drinking and driving

Women can expect to save on car insurance because they are less likely to be under the influence of alcohol and drugs while behind the wheel. While we might not think twice before sipping a small glass of wine with a meal and then driving home, some insurers report that men are more often arrested after drinking three or more alcoholic drinks before getting in their car.

The value of vehicles

Although it can be proven that women are safer drivers than men, the reduced price that women can expect to pay on their car insurance also has much to do with the overall value of their vehicle. If you are anything like me, you might envy the shiny sports car and dream of driving that around instead of a minivan. However, with a more valuable car, insurance premiums cost more in the long run. Perhaps there is something positive about driving an older or less attractive car around after all!

Taking chances will not save on car insurance

Some believe men to be bigger risk takers than female drivers. This can lead to serious accidents and even fatalities when behind the wheel. For instance, in the US, men are 77 percent more likely to be in a fatal car accident than women, which is further proof of their risky behaviour. If you have ever paused when turning across traffic or slowed down while driving along a winding road, you know that taking chances just isn’t worth it while in the driver’s seat. Car insurance providers recognise this, and they reward female drivers accordingly.

How age affects gender rates

Most of us recognise that the demographic of ‘young male’ is the most to insure; but you might not realise that young women also pay higher rates for their insurance cover. Women under the age of 25 do pay higher rates, but can expect premiums to go down as they age. This has to do with a woman’s maturity as she ages, but is also to do with the fact that many women in this demographic are mothers. If you have children, you probably exercise a little extra caution on the road to keep your children safe. Therefore, on average, this means females drive more safely on the road.

Obeying the rules of the road can help save on car insurance

Most women are happy to hear that they are less likely to get into accidents than men. In Australia, nearly eighty percent of fatal collisions involved a man. This simple statistic can be attributed to many factors, but there is no denying the fact that as women, we are more obedient about following the rules of the road. Studies have shown men are more likely to roll through stop signs, break the speed limit and refuse to wear a seat belt, all of which increase their chance of accidents and, therefore, their rates when you compare car insurance costs for both genders.

Although women may sometimes earn less at work than men and often pay more for healthcare insurance, one advantage to being female is having lower than average car insurance premiums. Taking fewer risks, being involved in fewer accidents and making safety a priority means that we women are generally better drivers.


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