Who pays more for auto insurance in the US, men or women?

Gender often plays a role when it comes to the premiums that a motorist has to pay for car insurance.

According to Value Penguin, a personal finance website, most states allow car insurance companies to consider gender when setting rates for premiums.

Who pays more for auto insurance in the US, men or women?

Generally, women pay less than men for car insurance, but the disparity depends on age. All younger drivers pay more for car insurance than their older counterparts, but this demographic also sees the biggest gender gap.

Teenage boys pay $4,946 per year as compared to $4,618 for girls of the same age- a discrepancy of $328, according to a study by Value Penguin.

The gap between genders narrows as drivers increase in age, with a 32-year-old man paying $1,846 for an annual premium in comparison with $1,831 for a woman of the same age. This comes out to a difference of only $15.

Auto insurance rates are typically determined by a variety of factors, including age, driving history, location, type of vehicle, and more. In general, insurance companies charge higher premiums when a person is deemed statistically to be more inclined to figure in an accident, and thus more likely to make a claim on their policy.

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Gender profiling for car insurance premiums prohibited in some states

While gender used to be a factor in determining insurance rates all over the country, several states have enacted laws that prohibit or restrict the use of gender as a rating factor in setting insurance premiums.

These laws are aimed at promoting gender equality and preventing discriminatory pricing based on gender.

Historically, insurance companies often charged young male drivers higher premiums because they were statistically more likely to be involved in accidents and engage in riskier driving behavior. However, as gender-based rating factors have been challenged and legislated against, the impact of gender on insurance rates has become less pronounced.

These are the states that expressly prohibit insurance companies from taking gender into consideration when issuing car policies.