Why Is Auto Insurance More Expensive For Males?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Young male drivers, statistically, have more accidents.  Then tend to be more aggressive than female drivers.  Since insurance rates are based on average claim experience and statistics, young male drivers who do drive safely are penalized by having to pay higher rates in order to pay for those who are not as safe.
    Answered on July 10, 2013
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In California males do not pay more for auto insurance than females.  However, in other states that might be a rating factor.  Rating factors are determined by comparing the claims of males against females.  If there is a significant difference the company can approach the insurance commissioner about including gender as a rating factor.  In the end it is all about numbers.  It is not because insurance companies prefer women over men.
    Answered on July 11, 2014
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  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! The thing to know about any insurance is that the costs are always based in great part on the risk of loss that the company has to shell out for. Any young or new driver will have a greater risk as they gain experience than an established driver, so the company will charge them more than the experienced driver. Young men in particular are a greater risk, and as a result, their rates are higher than most other drivers. I hope that helps, thanks for asking!
    Answered on July 12, 2014
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