TORONTO, May 20, 2020 /CNW/ – Auto insurance premiums are determined using a variety of factors, including a person’s driving record, years of driving experience, insurance history, vehicle make and model, type of usage, type of coverage, deductible, and so on. But one of the many factors that also has an impact on what people pay for auto insurance is gender.
It’s generally understood that men pay more than women for car insurance, particularly when they’re young and signing onto their first policy. What isn’t clear is how men fare over time. “To understand the correlation between age, gender and auto insurance premiums, we used our car insurance quoter to collect test data for male and female drivers aged 17-60, from three major Canadian cities,” said Justin Thouin, Co-Founder and CEO of financial rate comparison site LowestRates.ca. Today, the company released a report to illustrate how gender affects auto insurance in Toronto, Montreal and Calgary. While the data looks at three cities, these trends are similar across all of Canada.
The report shows:
In Downtown Toronto:
- Between the ages of 17-19, men pay 27% more annually for car insurance than women
- Between the ages of 20-24, men pay 11% more annually for car insurance than women
- Between the ages of 25-30, men pay 3% more annually for car insurance than women
- Between the ages of 31-40, men pay 5% more annually for car insurance than women
- From the age of 40 onwards, men and women pay equally for car insurance
In Downtown Montreal:
- Between the ages of 17-19, men pay 16% more annually for car insurance than women
- Between the ages of 20-24, men pay 14% more annually for car insurance than women
- Between the ages of 25-30, men pay 19% more annually for car insurance than women
- Between the ages of 31-40, men pay 14% more annually for car insurance than women
- Between the ages of 40-50, men pay 11% more annually for car insurance than women
- Between the ages of 50-60, men pay 11% more annually for car insurance than women
In Downtown Calgary:
- Between the ages of 17-19, men pay 12% more annually for car insurance than women
- Between the ages of 20-24, men pay 2% more annually for car insurance than women
- Between the ages of 25-30, men pay 2% more annually for car insurance than women
- Between the ages of 31-40, men pay 3% more annually for car insurance than women
- Between the ages of 40-50, men pay 5% more annually for car insurance than women
- Between the ages of 50-60, men pay 4% more annually for car insurance than women
Thouin said there are several reasons why men are charged more than women for auto insurance in Canada. “Statistics show that men are far more prone to road accidents, and they are also over three times more likely to drive under the influence of drugs and alcohol than women. We’ve also seen that men are also more likely than women to commit traffic infractions, such as dangerous driving.”
Thouin emphasized that while gender and age do play a role in determining car insurance premiums, these factors don’t supersede other important parameters like a clean driving record, having no insurance gap or claims history. ” Irrespective of gender, anyone who drives safely, follows traffic rules, and has no insurance gap for a significant amount of time can reduce their insurance premiums.”
For the full report, visit: https://www.lowestrates.ca/blog/auto/gender-auto-insurance-report-2020
Why do men pay more?
Insurance companies use historical data to identify patterns and predict the nature of claims in the future. That means your auto insurance premiums are, in part, determined by the past driving records of men and women in your neighbourhood.
One of the biggest reasons why men are charged more for auto insurance in Canada is because men are more prone to being involved in road accidents. According to data from Statistics Canada, there were 1,851 deaths reported due to transport-related accidents in 2018, which includes 1,313 males and 538 females.
Men are also more likely to drive under the influence of alcohol and drugs compared to women. According to 2017-2018 data from StatCan, 20,056 males have been found guilty of impaired compared to only 5,550 females. Men are also more likely than women to commit traffic infractions, such as dangerous driving and driving while prohibited.
While gender and age do play a role in determining auto insurance premiums, these factors don’t supersede other important parameters like a clean driving record, no insurance gap, claims history, etc. Irrespective of gender, anyone who drives safely, follows traffic rules, and has no insurance gap for a significant amount of time can reduce their insurance premiums.
Methodology
Test Quote Parameters:
- Age: 17 to 60 years
- Gender: Male, Female
- Single, employed
- Living in downtown of major city
- Driving a 2018 Mazda CX-5 GS 4DR AWD (not leased)
- Purchased vehicle in March 2019
- Winter tires
- Street parking
- G licence (or provincial equivalent)
- Insured consistently without any gap
- With current insurance company for two years
- Drives 10km daily to and from work
- Drives 30,000 km in a year
- Wants comprehensive and collision coverage
- Policy to start ASAP (June 2020)
- No cancellations; no time without insurance coverage (clean driving record)
- No discounts, no authorized credit check
