Men Pay More for Auto Insurance than Women: The Zebra Study

Recent analysis by The Zebra reveals that in the United States, men are now paying more for auto insurance than women, marking a significant shift from previous trends. In 39 states, women pay an average of $33 less for their auto coverage, with men paying more in certain states like Idaho and Texas, where the premium differences can reach 5% or approximately $140. Historically, data has shown that men are more likely to be involved in serious car accidents, which influences the pricing of auto insurance based on perceived risk.

Factors contributing to this change include a reassessment of risk associated with gender and a change in average credit scores between genders. Previously, men paid lower premiums largely due to their driving profiles; however, a market correction appears to have taken place, aligning rates more closely with actual driving risk. The Zebra’s report draws on extensive data analytics to highlight these trends, emphasizing the need for transparency in insurance rating factors and the impact of credit scores as another significant factor affecting insurance costs.

Moreover, many states have begun to outlaw the consideration of gender entirely in pricing strategies, indicating a shift towards more equitable insurance practices. Overall, the findings suggest that as the insurance industry evolves, so too do the factors shaping premium rates, with women now enjoying lower rates due to new market dynamics and changing credit conditions.