Why do men pay more than women on car insurance?

Insurance companies use a complicated math model to determine who should pay more for car insurance. For example, they determine that drivers under the age of 25 file more claims than those over the age of 25, and they charge those young people higher premiums as a result. This may sound unfair, but the basis of the insurance industry is to charge more to people who are more likely to file claims. The insurance industry has determined that women are, on average, safer drivers than men. As a result, men may have to pay more for car insurance. Often, however, this depends on the type of car the man is driving and other factors. 

blog comments powered by Disqus