Some may expect car insurance for women to be less expensive than men. Countless studies show that male drivers not only take more risks behind the wheel, they’re also involved in more crashes. But despite these statistics, women pay more for car insurance.
It’s important to note that rates vary by state and by company. Some insurers will have equal rates for both genders, while others have lower rates for women than men. This is why it’s important to shop around so that you can find the best coverage at the best cost.
Here’s what you can expect to pay for auto insurance as a female driver along with ways to lower your premium.
How Much Women Pay for Car Insurance
Traditionally, men have paid more than women for auto insurance, especially men in their younger years. In fact, it costs hundreds of dollars more each year for parents to insure a teenage son than a teenage daughter.
But as men and women get older, there’s a shift in price. The average car insurance cost for a 22-year-old female is likely to be less than the same coverage for a male. However, a 40-year-old woman with a clean driving record pays around $47 more a year, or $4 a month, when compared to the same coverage for a man.
For women who have bad credit or have had an at-fault accident, the price gap is even larger. This stands true even for men who too have poor credit or have caused an accident.
Check out the below chart for additional insight.
Average rate for 40-year-old woman
Costs above a man’s policy
Good driver and good credit
Recent at-fault accident
Good driver with bad credit
Low mileage driver
Minimum required coverage
Good driver and good credit
Why Companies Have Different Rates
There’s no consensus amongst car insurance companies as to who should pay more. This means that each company sets its own rates for customers in each state. The insurance company studies the risks of insuring various types of drivers and charges accordingly.
Because insurers use different data when conducting their analyses, they often reach different conclusions. Insurance companies must justify the rates they charge to state regulators.
Though some insurers charge more to insure a woman, not all of them do. Rates also differ from state to state. While it may be more expensive for a woman in one state, car insurance may be more expensive for a man in another.
Since rates can vary, the best way to get the best bang for your buck is to shop around. Find an insurer that offers the coverage you want at a price you can comfortably afford.
Half of the 10 largest car insurance companies charge more to insure a 40-year-old woman than a 40-year-old man. These companies include:
Research has found that smaller insurers, like Esurance, also consistently charge higher rates for women than men.
If you’re looking for an insurance provider that offers equal rates no matter your gender, consider State Farm. This is the biggest car insurance company in the U.S. Research has found that they charge the same rates for women and men aged 40.
Other options include American Family and Liberty Mutual.
States Where Gender Doesn’t Affect Rates
Depending on where you live, whether you’re a man or woman may not be a factor that impacts your car insurance rates. In several states, gender can’t be used to set car insurance rates, including:
- Michigan (certain parts)
- North Carolina
In all of the other states, average car insurance rates are higher for 40-year-old female drivers than for equivalent males. Only three states, Tennessee, Maine, and Wyoming showed higher average rates for 40-year-old men.
Finding the Cheapest Car Insurance for Women
Getting the best car insurance rates isn’t as simple as choosing the first insurance provider that you come across. There are many factors that impact your rates, including:
- Where you live
- If you pay your bills on time
- Driving history
- How long you’ve been driving
Here are some tips to find the cheapest auto insurance for a 19 year old female (or a woman of any age).
Compare Rates from Multiple Companies
The number one thing you can do to get the lowest possible car insurance rates for women is to shop around. There’s no single company that offers the best car insurance for under 25 females or those 40 and older.
When shopping around, get quotes from small, regional, and large insurers. Many small and regional insurers offer lower rates for women.
Remember That Gender Isn’t a Big Factor
Gender may play a role in determining what you’ll pay for car insurance, but it isn’t a big factor. Finding the cheapest insurer that provides the coverage you want can do much more to lower your rates, versus finding a company that offers lower rates for women.
Consider this scenario:
A 40-year-old woman in Maryland pays $3,465 for car insurance through one insurer and may be happy to know that she’s paying $100 less than a man with the same policy. However, with a different insurer, she could be paying $2000 for the same coverage.
By focusing on finding the cheapest insurer in her state, the woman can keep even more money in her pocket each month.
Make Choices That Lower Your Rates
No matter if you’re a woman or a man, both genders can lower their car insurance rates by making smart choices on and off the road. Some tips to save money on auto insurance coverage include:
- Asking about discounts (ie. student, veteran, military, etc.)
- Opting for a higher deductible
- Choosing a car that’s less expensive to insure. Some of the top-selling cars that are inexpensive to insure include the Honda CR-V, Subaru Outback, and the Jeep Wrangler.
You can also get cheap car insurance without NCD. A no-claim discount can reduce the overall cost of your car insurance for each year you don’t make a claim.
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