Car Insurance for Women

Car Insurance for Women

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We analyzed quotes from top auto insurers and found that car insurance for women costs 7% less on average than it does for men. The reason for this costs difference is that insurance companies have found that women are generally less likely to be in accidents. This rate discrepancy is most pronounced in young girls' car insurance rates, and men over the age of 30 actually pay slightly less than women of the same age. So overall, women still save money on car insurance, but it's still possible for women to overpay for coverage; so make sure to maximize discounts and shop around for your best deal.

Why Do Women Pay Less Than Men For Car Insurance?

Women pay less than men for car insurance because insurers have found a statistical correlation between a driver's gender and the size and frequency of car insurance claims, with men making more claims than women overall.

Part of the reason behind this increase in likelihood of being involved in a collision is that men—on average—simply drive more than women. Additionally, men have also been shown to more frequently engage in risky driving behaviors like speeding and drunk driving. This is especially true for young drivers, with young male teenagers being twice as likely to be killed while driving than young ladies are. Due to these and other reasons, young women are less-often involved in car crashes than young men, and their insurance rates are adjusted accordingly.

Comparison of monthly insurance rates for men and women of different ages

However, the difference between the car insurance rates paid by men and women changes substantially with age. We sampled quotes for different drivers and found that 20-year-old women pay 16%—or about $55 per month—less for car insurance than 20-year-old men. However, by age 32 the relationship flips and men paying $6 less per month than women do for car insurance.

Gender Plays a Relatively Small Role in Setting Insurance Premiums

While your gender undeniably has an impact on your car insurance rates, it's far from the biggest factor when an insurance company decides your premium. Your age, your driving history and the insurer you choose all have greater impact on car insurance prices.

For example, monthly auto insurance rates for women get 52% cheaper between the ages of 20 and 32, and rates for men fall by 60% over the same span. And getting in a single car accident can raise your rates by as much as 34%. By comparison, the average difference between what men and women pay for car insurance is a relatively slight 7%.

Where to Find Cheap Car Insurance for Ladies

To understand which companies offer some of the best rates for ladies, we collected sample quotes from three of the largest auto insurance companies. Progressive consistently offered the cheapest car insurance rates for women, providing quotes 22% below average in our sample.

Comparison of different companies' monthly insurance rates for women

Interestingly, we found that every insurer weighs gender differently when providing insurance quotes. Progressive and State Farm both offer better rates for women overall, while Geico offers better rates to men. However, the price differences between genders at each insurer are slight—around 4% to 8% each—and the overall price difference among insurers has a much more significant impact than gender does. Women looking for their best deals shouldn't worry too much about choosing an insurer that specifically caters to female drivers, so long as they're checking multiple insurers for the best rates.

Comparison of monthly insurance rates for men and women at different insurance providers

Car Insurance Discounts For Female Drivers

Car insurance companies don't offer any special discounts for women alone, but women can cut their car insurance bills in all the usual ways. Here are some of the best ways for women to save on car insurance:

Shop Around

The most important way for women to get the cheapest car insurance rates is to compare quotes from multiple insurers. For example, we found that a 32-year-old woman driving in Austin, Texas, will save $80 per month if she switches from State Farm to Progressive, meaning that woman might spend an additional $960 per year if she didn't shop around. It's also a smart idea to check back periodically to confirm you're getting your best rate, especially if you experience a significant life event like getting married, moving or buying a car.

Drive Safely

Your driving history is one of the biggest factors insurers consider when setting rates. Not only will avoiding accidents keep insurers from raising your rates, staying safe on the road can often qualify you for sizable discounts. For example, women drivers using Progressive's safe driving telematic app can save up to 30% off their previous rates.

Bundle Policies

Insurance companies give you a discount for buying in bulk. Most insurers offer discounts for insuring multiple vehicles under the same policy, as well as savings for purchasing multiple types of insurance (such as life plus automobile policies) from the same company.

Group Affiliation Discounts

Some insurers let you save money if you're affiliated with a certain organization or professional group. Sometimes it's based on a perk a group, like your employer or union has specifically negotiated with the company. Other times, you simply get a discount for working in a specific profession. For example, Geico offers discounts to members of the Society of Women Engineers. Ask your insurance company what group or professional discounts you might be eligible for.

States Where Car Insurance is the Same for Men and Women

In order to make drivers' insurance rates based more on factors in their control—such as driving history—some states have banned insurance companies from using gender when setting rates. These include:

The effect of this restriction on insurers is that young men actually pay less and young women pay more for car insurance than if insurers were to set rates based on gender. This is because males—that are typically riskier drivers—raise the average cost of coverage for the group of drivers as a whole, and safer women drivers end up paying more for car insurance.

Matt is a Technical Writer at ValuePenguin who works on distilling the complex details of insurance into accessible advice. He previously created educational content at Grovo Learning and MarketSmiths Content Strategists. Matt's consumer-focused analysis of insurance has appeared in publications like CNBC, Yahoo Finance and the Miami Herald.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.