Why Car Insurance Can Be Cheaper for Women: Exploring the Factors Behind Insurance Rates

When it comes to car insurance, many factors come into play in determining premium rates. One of these factors, although not the only one, can be the driver’s gender. But why does this happen? In this post, we will explore the reasons why car insurance can be cheaper for women and how insurers assess risks when setting insurance rates.

1. Driving Behavior:

One of the reasons insurers may offer lower insurance rates for women is related to driving behavior.

Statistically, women tend to be involved in fewer traffic accidents and have fewer traffic violations than men. This can be attributed to a variety of factors, including a more cautious approach to driving, less propensity to speed, and less likelihood of taking unnecessary risks on the road.

We have compiled some statistical data that support the points made above:

a. Traffic Accidents:

    • In 2022, the Federal Highway Police (PRF) found that out of the 99,311 accidents registered, only 12% involved women. This represents approximately 11,480 accidents. In contrast, men were involved in 87,831 accidents, which corresponds to 88% of the total1.
    • Additionally, some statistics indicate that women also receive fewer traffic fines compared to men. They practice defensive driving, known as “safe driving,” by taking precautions to preserve their lives and avoid accidents1.
PRF Agent – Federal Highway Police

b. Other Types of Accidents:

    • A study conducted by UNICAMP – University of Campinas showed that between June 2021 and June 2022, there were 183% more collisions involving male drivers than female drivers. In absolute numbers, men had 192,643 incidents, compared to only 68,039 for female drivers. These numbers highlight the lower incidence of accidents involving women2.

In other words, historical accident data plays an important role in determining insurance rates. According to many statistical analyses, women are less likely to be involved in serious or fatal accidents than men. This trend may positively influence insurers to offer lower premiums for women, as they represent a lower risk of accidents.

Accident – Car collision

2. Driving Under the Influence of Alcohol:

The National Traffic Department (DENATRAN) reports that, on average, about 20% of drivers involved in fatal traffic accidents in Brazil were under the influence of alcohol. Although there is no specific gender data in this context, international studies suggest that men are more likely to drive under the influence of alcohol.

3. Speeding:

Data from the National Road Safety Observatory show that inappropriate speed is one of the leading causes of traffic accidents in Brazil.

Although there are no specific statistics on speeding behavior by gender, global studies indicate that men are more likely to engage in speeding.

Regulations and Pricing Policies:

In many regions, insurers may be subject to regulations prohibiting gender discrimination in insurance pricing. This means that insurers cannot simply offer lower rates for women without statistical justification. However, even in these circumstances, gender-associated risk factors may still be indirectly taken into account through other factors such as driving history and demographic profile.

Conclusion

While gender may be one of the many factors considered by insurers when determining auto insurance rates, it is important to recognize that each situation is unique. Not all women will pay less for car insurance, and other individual factors such as driving history, age, and vehicle type also play a crucial role in insurance pricing.

However, it is undeniable that statistics show a trend of lower risk associated with women when it comes to vehicle safety, which may be reflected in lower insurance rates for some female drivers.