Why men pay more when it comes to car insurance

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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If you are a man who is currently searching for car insurance you will soon realise that you will be coughing out more in terms of car insurance premium, and there is a reason why. The stats are stacked against you. The difference in insurance premiums among men can be drastically different depending on your age, your location and other variables.

Some argue that the reason why the statistics are so high is because there are more male drivers than female drivers. Whatever way you choose to look at it, the fact remains that you will still pay out more.

Factors that cause men to pay more

The Age group among males that pays high premiums are males age 25 and under. Cole car insurance was recently under the spotlight for making their male drivers pay two times more than their female counterparts. Male drivers aged 21-24 paid an excess of $600 while females of the same age paid $300. However, you can breathe a sigh of relief because these decrease as you become older.

Cole’s claimed that the reason for the price difference was because men made more claims than women. This is backed up with evidence from the Royal Automobile Association of South Australia which published a study that revealed that men have made 10,000 claims more than women over the past three years.

Other reasons to why men pay higher car insurance is due to driving habits on the road. Statistics released by Young Driver FactBase shows that the cause for young driver fatalities on the road is due to speeding and 80% of those killed are males.

These bad driving habits that men of all ages engage in are:

  • Not properly stopping at a sign
  • Going over the speed limit
  • Not wearing a seatbelt at all times
  • Driving under the influence or impaired

The data does assess the general driving behaviour of men, excluding those who don’t fall into such trends. Insurers calculate your risk as a driver and how much cover you will need should you be involved in any situation. Other factors such as your age, the type of car you are driving, location and the value of your car all contribute to how much you will end up paying.

How to save on your car insurance premiums

There are a few things that are left in your control when it comes to controlling how much you pay towards your premiums, making it more affordable.

1. Avoid making cheap claims

Payout of your own pocket when it comes to smaller expenses rather than claiming them on your insurance. It will help you maintain a no claims history making you appear as a safe driver, which in turn will reduce your premiums.

Shop around for deals

You will be doing a great injustice to yourself by signing up for the first deal that comes your way. Always compare your quotes from multiple insurers to make sure you get the best deal.

Limit unnecessary medications

You can clarify with your insurer which modifications are less likely to hike up your premiums before going out and getting them. If the modification is to increase the safety of your cars this will swing in your favour by lowering your premiums.

Choose the right level of cover for your car

An old jalopy that you are planning to sell or trade soon is better off with a basic cover instead of buying a high-level protection cover offered by comprehensive car insurance.

Constantly review your level of cover

Does it still match your pocket and cars needs? If not, then you can speak to an insurer or a financial advisor who will help you find a deal that is made for you.