The Truth about Differences in Insurance Rates for Men and Women

Man Woman InsuranceThere are many rumors about the differences in insurance premiums for men and women. We have analyzed insurance premiums of Canadians across the four most populated provinces. The outcome was quite clear across all major insurance types: Home, Auto, Life. On average, women in Canada pay 5% less than men for Auto insurance, 8% less for Home insurance, and even 25% less for Life insurance. What are the reasons for these differences?

Digging into Auto Insurance Premiums:

Auto Insurance, Premiums for Man and WomanAlthough there are many criteria considered for the estimation of Auto insurance premiums, it’s a fact that women appear to be safer drivers than men, which is reflected in insurance premiums. Women not only have fewer accidents than men, but their claim amounts are lower.  The average difference is in Ontario is $5/month and means approximately a 3% difference in premiums.

Zooming into Home Insurance Premiums:

Home Insurance, Premiums for Man and WomanDifference in Home insurance premiums is mostly driven by Home value and a number of other aspects that are not affected directly by a consumers’ gender. Nevertheless, the premium difference reaches 8% in favour of women on the national level. Interestingly there is virtually no difference between Home insurance rates for men and women in Ontario!

Analyzing Life Insurance Premiums:

Life Insurance, Premiums for Man and WomanThe most significant difference in insurance premiums can be observed in Life insurance: men pay on average 25% more than women. This picture is quite consistent across most provinces analyzed and difference reaches 23% in Ontario.One of the main factors that drives this difference is the fact that women have a significantly longer life expectancy of 83 years than men with 79 years (according to Statistics Canada, for 2006-2008). Though this gap is closing, and was 7 years a quarter of a century ago, insurance companies see women as a lower-risk customer segment than men.

As our analysis show, women in fact seem to pay less for different insurance types than men. What have your gender experiences shown when buying insurance?

Posted in Auto Insurance, Home Insurance, Life Insurance

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