It’s a question asked by many, but the answer can be hard to guess. Do men really pay more for car insurance than women?
Car insurance is an often-misunderstood concept that leaves some people scratching their heads wondering why their premium is higher than that of a friend or neighbour. There are many factors that influence your car insurance premium, so, we have the answers to common questions about how a driver’s age and gender impact their insurance.
Frequently Asked Questions
Do men pay more for car insurance?
Why men are considered riskier to insure than women?
When examining insurance premiums by sex, it’s important to understand that insurance companies have been gathering data on accident trends for decades. This massive database of information is analyzed by specialists called actuaries, who seek out trends in the information. One trend that has long been identified is the fact that young male drivers have many more accidents than female drivers of the same age.
In fact, data from the 2017 National Household Travel Survey indicates that male teen drivers aged 16–19 years were almost three times more likely to be involved in a fatal crash than male drivers aged 30–59. The CDC states that in 2019, the death rate from accidents for male drivers 16–19 was more than twice as high as that for female drivers the same age.
There are several reasons for this, including:
Inexperience – teen boys are more likely to not identify dangerous situations and are much more likely to make critical decision errors that can lead to an accident.
Peer pressure – boys are more susceptible to peer pressure about their driving behaviour than their female peers. For 16- and 17-year-old drivers, having 1 passenger under age 21 in the car was associated with a 44% greater risk of being killed in a crash, and having 2 passengers under the age of 21 doubled the risk of a fatal crash.
Seatbelt use – teen boys are less likely to use seatbelts when they drive. In fact, they have the lowest seat belt use rates. And the sad reality is that in half of all teen car accident fatalities, the deceased were not wearing seatbelts at the time of the collision.
Distracted driving – any parent of a teen knows that keeping them focused on a task can sometimes be challenging. Driving is no exception. One study found that 40% of teen boys had used their phones to text or email while driving in the past 30 days.
Speeding – it is also known that young males speed more than young females. And the data shows that young males are more than twice as likely to speed as women of the same age.
How do age and gender affect car insurance rates?
First, the good news. While young men are considered riskier to insure than young women, gender-based differences in premiums actually level out as drivers get older. In fact, by age 32, male drivers with established safe driving records will pay similar or equal premiums compared to their female peers.
The risk of an accident is particularly high during the first months of being licensed, with the Household Survey indicating that the accident rate is about 1.5 times higher for 16-year-old drivers as it is for 18 to 19-year-old drivers.
This results in substantially higher premiums for a youth’s first years of driving. In fact, a young man with a good driving record can expect to see his premiums continue to decrease every 2-3 years between the ages of 16 to 25.
Provided they stay accident-free, young people can enjoy premium reductions when they reach these age milestones: 16-18, 19, 21, 23 and 25.
What should young men do to pay less for insurance?
While young drivers can expect to pay more for insurance during their first few years of driving, there are ways that they can reduce their premiums.
Driver training – the fastest way for young men to reduce their premium is by taking a driver education course. In fact, a young driver who successfully completes a driver education program by a company that is recognized by the provincial government can expect an immediate discount on their premium.
Because successfully completing an accredited driver training course automatically earns young drivers the equivalent of 3 years of licence experience, rather than starting at 0: Driver Training discounts can be up to 30% compared to someone with no driver training.
Drive safely – the only way for a young driver’s premium to be reduced over time is to be a safe driver. Any traffic tickets or accidents that a young driver experiences will increase their premium for years to come.
Do male teen drivers pay significantly higher rates for insurance in Ontario and Alberta?
It is true that male teen drivers tend to pay more than female motorists with similar experience levels across Canada. However, in Alberta, the difference in insurance costs for young male and female drivers is less pronounced, provided that other factors like location, vehicle type, driving record and driver training histories are comparable.
No matter what driver demographic groups you fall into, getting an accurate, fast and free online quote from an insurance brokerage can help ensure you’re getting the best coverage for an affordable price. Start your quote here to see if we can snag you savings on top-notch coverage from our trusted partners.