Average car insurance rates by age and gender

Age and gender are two factors that come into play when determining your car insurance premiums. For both men and women, younger drivers tend to pay more for car insurance than their older counterparts. In general, women pay less for car insurance than men. For example, women aged 16 to 24 pay around $140 to $784 less a year for car insurance than men in the same age group. 

However, how gender insurance companies consider gender may be changing as some states ban this practice. For example, California and Michigan have both banned insurance companies from considering gender as a factor when determining car insurance premiums. Other states like Hawaii, Massachusetts, North Carolina, and Pennsylvania have followed suit. 

We explore how age and gender impact car insurance rates below. 

How do age and gender affect car insurance rates?

Insurance companies take many factors into account when determining premiums. Your age and gender are two factors that most insurers consider. 

In general, younger drivers pay more for car insurance. That’s because mature drivers with more experience tend to get in fewer accidents than inexperienced drivers. With that, young people under 25 tend to face the highest insurance rates. 

“Gender can impact car insurance rates,” says Ben Michael, Director of Auto at Michael & Associates, a law firm in Texas. 

Michael continues, “Any factors that can contribute to a higher likelihood of getting into an accident can cause rates to rise. Statistics demonstrate that men are both more likely to get into car accidents and more likely to have major injuries due to car accidents, so because of that, they are often a little more expensive to insure.”

Consequently, when gender is taken into account, women usually enjoy lower car insurance rates than their male counterparts. 

How states handle gender and car insurance

While insurance companies have a history of taking gender into account when determining car insurance premiums, that’s changing. Some states have banned insurance companies from considering gender when determining car insurance premiums. 

California, Michigan, Hawaii, Massachusetts, North Carolina, and Pennsylvania are some of the states that have banned insurance companies from determining premiums based on gender. 

Another important consideration is the option to choose a third-gender designation on driver’s licenses. As states make changes to the official documentation for gender, insurance companies will likely adjust their premium calculations. The many states that allow drivers to select a third gender include:

• Washington
• Oregon
• California
• Nevada
• Utah
• Colorado
• New Mexico
• Minnesota
• Illinois
• Michigan
• Virginia
• Pennsylvania
• New York
• Vermont
• New Hampshire
• Maine
• Massachusetts
• Rhode Island
• Connecticut
• New Jersey
• Maryland
• District of Columbia

Car insurance rates by state and gender

Women in Maine, New Hampshire, and Vermont have the lowest average car insurance costs, at less than $1,300 annually. Women in Louisiana and Florida pay the most for car insurance, with average annual costs over $2,700. Men pay slightly lower rates in Florida and Louisiana. However, in California and Michigan, the next most expensive states, men and women face the same average premiums. 

The table below breaks down the average insurance costs by gender and state. 

Why do auto insurers use gender when setting rates?

As insurance companies determine premiums, they consider risks. A driver with more risk factors usually sees a higher premium. 

Statistics show that women tend to get in fewer car accidents than men, speed less than men, are less likely to be in a fatal accident and are less likely to be convicted of a DUI. Because of this, insurance companies take on less risk when they insure a female driver. Ultimately, this leads to generally lower car insurance premiums for women compared to their male counterparts. 

How gender impacts car insurance rates

Female drivers from age 16 to 24 pay, on average, around $412 less a year for car insurance compared to males, according to Insure.com’s rate analysis. That’s 9.47%.

If car insurance companies no longer considered gender, young drivers would likely see their rates change the most. Without gender as a factor, insurers would charge the same rates to men and women. Most insurers would likely raise the rates of female drivers to match those of male drivers. 

Since the difference in premiums across genders diminishes dramatically after age 25, drivers under 25 would see the biggest rate change. 

For example, women tend to pay at least 10% less than their male counterparts from age 16 to 20. After that, the rate difference closes quickly. If gender weren’t considered, young women would likely see their rates rise to meet the average for male drivers. 

The table below highlights the differences in auto insurance premiums for males and females of different ages. 

How much does gender affect auto insurance rates?

While gender impacts car insurance premiums, the difference between average rates isn’t dramatic. The national average annual rate for male drivers is $1,898, $2 more than the national average annual rate for female drivers, which is $1,896. 

The difference between male and female car insurance rates is more stark for young drivers. For example, rates for female drivers are usually several hundred dollars less until age 22. After that, the average rates of male and female drivers are similar. 

The table below highlights the difference in average rates for male and female drivers across different age groups. 

How do different car insurance companies account for gender?

Every car insurance company has its own method for determining premiums. That means you’ll find different rates across different companies. 

The table below highlights the average annual rates for male and female drivers of different ages across companies. 

How to get lower car insurance rates

Regardless of your age and gender, car insurance premiums can add up quickly. Use the strategies below to lock in lower car insurance rates:

• Shop around. Comparing quotes across multiple car insurance companies can help you lock in savings. 
• Ask about discounts. Most insurers offer a range of discounts to drivers. Don’t hesitate to ask if you qualify for a discount. 
• Opt for a higher deductible. Most insurance companies offer lower premiums to drivers who select a higher deductible. If you have the cash on hand to cover a higher deductible, it’s a good way to save.