Why men have higher car insurance premiums than women
Have you ever wondered about why men have higher car insurance premiums than women? The difference isn't that large, but women do in fact pay less on average than men do for auto insurance. According to an articleon the Toronto Star, “The data reveals that on average men in Canada pay 5 per cent more than women for auto insurance, 8 per cent more for home insurance and up to 25 per cent more for life insurance.”
So why do men pay higher car insurance premiums than women?
Women are statistically safer drivers
Many studies have been conducted over the years that prove women are safer drivers than men. These studies have provided the statistics that insurance companies use to distribute quotes for insurance. The stats, more specifically, have proven to the insurance companies over the years that men are more likely to get into an accident or to get into some sort of trouble while behind the wheel.
Men have bad driving habits
Some unsafe driving habbits that men are more likely to engage in than women include:
- Not properly stopping at a sign
- Going over the speed limit
- Not wearing a seatbelt at all times
- Failing to carry the proper insurance documentation
- Driving while impaired
Of course, the data assesses only general behaviour. Many male drivers skirt all of these shortcomings while many women fail to avoid them. But for insurance companies, it's a number game, and the numbers say the probability of bad behaviour is skewed toward men.
It costs more to insure a male
At the end of the day, insurance companies don’t want to spend money. They see bad behaviour leading to damage leading to a claim, and they see men as the more likely catalyst for the process. That too is why younger drivers tend to have higher premiums than older drivers.
Here's a quote that nicely sums up the gender gap and age gap: “Statistically speaking, more male drivers under the age of 25 are involved in auto accidents than women.”
The bottom line is simple. An insurance company doesn’t want to take on any unnecessary risks. They’re using past statistics to gather information. This helps them make decisions on who they insure and how much they charge for the insurance. The statistics tell them men are a greater risk to insure than women.
That’s why men end up paying more for insurance. With that being said, it’s always important that you shop around for the best insurance rates possible and that you try to improve your driving so that your insurance company can’t find an excuse for raising your rates!