Why Do Men Pay More for Auto Insurance?
Across the nation, men and women call insurance companies every day to obtain automobile insurance, and are sometimes surprised to discover that the men in the family will pay higher premiums than the women for the exact same coverage. Because research has shown that men have more accidents and injuries while driving than women do, insurance companies increase premiums for male customers.
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History
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A nationwide analysis of vehicle crashes conducted by the National Highway Traffic Safety Administration (NHTSA) in 2004 concluded that men of all ages are higher-risk drivers than female drivers. Because of such studies, even if a male driver has a perfect driving past, great credit and lives in an area that is not high-risk, he will most likely have to pay more for his automobile insurance than a female with the same life markers would pay.
Statistics
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Men have more accidents and make more claims than women. According to the NHTSA's 2004 Early Edition Report, male drivers were involved in 27,000 more fatal accidents, 432,000 more injury crashes and 1,369,000 more property-damage incidents than female drivers, all of which equated to 1,828,000 more insurance claims in a single a year.
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Speculation
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Insurance companies believe that men are naturally more aggressive than women, including engaging in risk-taking behaviors such as not wearing seat belts, speeding and driving while under the influence of drugs or alcohol. In addition, men are believed to drive more miles each year than females drive. Jobs related to driving, such as over-the-road truck drivers, cab drivers and long-distance salespeople, are still male-dominated fields. The more miles one is on the highways and roads, the better statistical chance that driver has for accidents.
Expert Insight
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Insurance companies pay close attention to studies by the NHTSA and other national organizations because it allows them to set premiums based on statistical trends and changes. Insurance companies take overall statistical data into account in compiling demographic information for the geographic areas that they serve.
Effects
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Insurance is a numbers game. Using data compiled nationally, insurance companies assess the odds that drivers of a particular gender, age and place of residence will have an accident. Insurers base their premiums on the probability that their clients will get into accidents and cause personal or property damage. As male drivers age, their premiums usually begin to drop as long as they have not demonstrated high-risk driving behavior such as getting citations for moving violations and causing accidents.
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