Auto Insurance and Gender: How and Why It Affects Your Rates in 2025

When shopping for auto insurance, people may not notice that their gender can impact the cost of coverage. While this factor may seem surprising, insurance companies use statistical data to determine risk levels for demographics such as age, driving history, and location. In addition, gender is a pricing factor in many states, with men often paying more than women, especially in younger age groups.

Additionally, transgender and nonbinary drivers may face unique challenges when updating their gender marker on a driver’s license or finding an insurer that offers gender-neutral pricing.

How Gender Affects Auto Insurance Costs

Men, women, transgender, and nonbinary individuals often pay different rates depending on state laws, insurer policies, and statistical risk assessments.

Men vs. Women: Who Pays More?

Insurance companies analyze accident data to assess risk, and, historically, young men under 25 are more likely to engage in risky driving behaviors. According to Bankrate, teenage male drivers tend to pay higher premiums due to their increased likelihood of accidents. However, as drivers age, the gap between men's and women's rates narrows so that by age 50, men typically pay only 1% more than women.

For example, the average annual premium for an 18-year-old male driver is approximately $7,638 while a female driver of the same age pays around $6,987. By age 25, the difference becomes smaller, with men paying about $3,328 per year compared to $3,201 for women.

As drivers reach their 40s, men’s rates average $2,641 annually while women pay $2,621—a difference of just $20 per year. By age 50, the cost gap is even narrower, with men paying roughly $2,469 and women paying $2,444 for full coverage.

Why Do Young Men Pay More?

Statistics show that young men are more likely to engage in risky driving behaviors, which leads to higher insurance premiums. Men under 25 have a greater tendency to speed and drive recklessly, increasing their likelihood of accidents.

Additionally, men are involved in more fatal crashes compared to women, making them a higher risk for insurers. While women may file more claims overall, men tend to file fewer but costlier claims, which further contributes to their higher insurance rates.

But Sometimes Women Pay More?

A recent study found that in some states, women now pay more than men for car insurance. In fact, The Zebra's research discovered that women pay higher rates in 25 states due to shifting accident trends and insurance company data adjustments.

How Gender Neutrality Affects Auto Insurance Rates

While most insurers still use binary gender categories (male and female) for pricing, some states have begun implementing gender-neutral insurance laws. California banned gender-based auto insurance pricing, making rates the same for all drivers, regardless of gender identity. Massachusetts, Pennsylvania, and Colorado allow drivers to use "X" as a gender marker on their driver’s licenses, but insurance pricing policies vary by company.

Unfortunately, in states that still use gender as a factor, some transgender individuals have reported higher or inconsistent premiums after updating their gender marker on their driver’s license.

Why Do Insurance Companies Use Gender as a Factor?

Insurance companies base their pricing on risk assessment models, which use past accident data to predict future claims. Since men and women have different driving behaviors, insurers adjust rates accordingly. Transgender and nonbinary people may be charged premiums that are based on gender-based pricing models—even in states that recognize their authentic identities.

Main reasons why insurers consider gender include:

• Historical risk data—Men, especially young men, are statistically more likely to get into serious accidents
• Claim frequency—Women tend to file more minor claims, while men file fewer but costlier claims
• Driving habits—Men are more likely to drive aggressively and take risks on the road

That said, gender is only one factor among many that affect premiums. Other considerations include credit score, location, driving record, and type of vehicle.

Which States Ban Gender-Based Pricing?

Not all states allow insurance companies to use gender when calculating rates. As of 2025, six states have banned gender-based pricing for auto insurance. In California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania, insurers must set rates based on other risk factors, such as driving history, mileage, and vehicle type, instead of gender.

Montana was actually the first state to ban gender-based insurance pricing back in 1985. However, the law was reversed in 2021 after insurers claimed it caused unintended pricing imbalances, leading to higher rates for some drivers.

How to Get the Best Auto Insurance Rates in 2025

Regardless of gender, there are ways for consumers to lower their car insurance premiums. Here are some tips:

• Compare multiple quotes—Different insurers weigh factors differently so shopping around can help you find lower rates. Check at least three different insurance providers before making a decision.
• Take advantage of discounts—Many insurers offer discounts including safe driver discounts, available if you have no accidents or violations, bundling discounts, allowing you to save by combining auto and home insurance, low-mileage discounts, so that if you drive less, you may qualify for a reduced rate, and good student discounts, for young drivers with good grades, allowing you to save up to 25%.
• Maintain a good credit score—In most states, your credit score affects car insurance rates. A higher score can lower your premium. States that ban credit-based pricing include California, Hawaii, Massachusetts, and Michigan.
• Drive safely and avoid accidents—Your driving history has the biggest impact on your rates. Avoiding accidents and speeding tickets can keep your premium low over time.
• Choose a higher deductible—A higher deductible (e.g., $1,000 instead of $500) can lower your monthly premium. Just ensure you can afford the out-of-pocket cost if you need to file a claim.
• Consider Usage-Based Insurance (UBI)—Some insurers offer pay-per-mile or telematics-based insurance, where rates are based on actual driving behavior rather than general demographics.

Sources:

• AgentSync: Which States Ban Gender-Rating in Insurance Premiums?
• Bankrate: Auto insurance rates by age in 2025
• California Department of Insurance: Commissioner issues regulations prohibiting gender discrimination in automobile insurance rates
• CalMatters: What California's 'nonbinary' gender designation will cost teen drivers
• Commonwealth of Massachusetts: Massachusetts Consumer Bill of Rights for Automobile Insurance
• Commonwealth of Massachusetts: Massachusetts law about gender identity or expression
• Consumer Federation of America: Report Finds Gender Disparity in Auto Insurance Premiums, Women Charged more for Same Coverage
• Delaware: Report Finds Gender Disparity in Auto Insurance Premiums, Women Charged More for Same Coverage
• State of Colorado Department of Regulatory Agencies: SB21-169 - Protecting Consumers from Unfair Discrimination in Insurance Practices
• The Zebra: Women now pay more than men for car insurance in 25 states (despite men being riskier)

Further Thoughts

While gender can impact auto insurance rates, it's just one factor among many. Young men typically pay higher premiums due to riskier driving behavior, but, as drivers age, the difference evens out. If you live in a state that bans gender-based pricing, your premium is based on other factors like driving history and location.

Shopping around, taking advantage of discounts, and maintaining a clean driving record can help people get the best possible rate. By being proactive, checking their state's insurance regulations, and comparing quotes, consumers can find the right policy at an affordable price—regardless of gender.

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