Why is it legal for companies to charge men more for car insurance?

Answered by Home Insurance, Car Insurance Expert Shannon on February 25, 2021

I found out that men get charged way more for car insurance than women. That doesn't seem fair — how is that allowed? Isn't this a form of discrimination?

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Shannon

Home Insurance, Car Insurance Expert

Gender is one of many underwriting factors that insurance companies use to determine your insurance premium, or the cost to insure your specific risk. Although it seems unfair, men historically are in more car accidents than women. This isn’t because they are worse drivers; they simply tend to drive more. Think about when you see a group of people in a car, whether they’re family, friends, or couples. Who tends to be the driver? Also, the statistics say that men tend to drive slightly more aggressively and select cars that are known for speed rather than safety features.

That being said, gender is not a significant underwriting factor, meaning it’s not weighted as heavily as others, and insurance rates between men and women are becoming more similar as time goes on. The practice of charging men more is not considered to be discrimination because insurance companies have proven over time that male drivers present a different risk than female drivers. The most significant thing that you can do to help reduce your insurance premium is to maintain a safe driving record.


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