The Price Gap: Car Insurance

When you think about money and the role gender plays, most people will reflect on the pay wage gap where women generally make 80 percent of what men are paid (Miller, 2016); but did you know, there is also a gap in the amount men versus women pay for car insurance? Commonly, males have higher car insurance rates than females.

Some of the factors insurance companies take into consideration when calculating one’s rates include their car, driving record, credit history, age, and gender – with gender holding more weight in younger drivers. Some of the influencers of the pricing gap according to the link provided, are “the types of cars typically chosen by men, the frequency of accidents among women versus men, gender-based statistics on risky driving behavior, and the average number of miles driven by women vs. men.”

***Statistics provided by the Insurance Institute for Highway Safety ***

•71% of all car accident-related deaths in 2012 were males.

•The number of drivers who died in a fatal car accident was 50% higher for men than women in 2008.

•Men are much more likely to have been under the influence of alcohol in a fatal crash. In 2012, 38% of fatally injured male drivers had BACs of over 0.08%, as compared to 20% of fatally injured female drivers.

•Seat belt use was observed in 88% of female front seat occupants, as compared to 84% of male front seat occupants.

•In 2012, 23% of male drivers who were involved in fatal accidents were speeding at the time of the accident, while 14% of women involved in fatal crashes were doing the same.

The reality behind the numbers-

What are these numbers really saying? They are simply reflective of the increased risk-taking behavior and importance placed on shallow values aspects of masculinity. At a young age, the social approval (or pressure) that comes with having a car, especially a nice one, obviously proves dangerous for the measure of one’s masculinity is usually determined by peer groups.

I understand the maturity component my parents often spoke of that came with having a car. Not giving in to social pressures to drive and act recklessly may be the difference of life or death on the roads, and the price gap in insurance reflects that males generally are more likely that females to be irresponsible.

http://www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/

http://www.dmv.org/insurance/how-gender-affects-auto-insurance-rates.php