Why is car insurance more expensive for men and younger drivers?

It’s no secret that young drivers and men often face higher car insurance rates. And if you’re both young and male? Well, it’s a double whammy.

The latest findings, based on Mozo's analysis of 295,346 car insurance quotes from 33 providers, highlight how these groups pay significantly more than their older or female counterparts. But what exactly is driving these higher premiums and is there a silver lining? 

Let’s dive into the details.

Gender’s impact on car insurance premiums

Let’s cut to the chase: men will almost always pay more than women for car insurance, all else being equal. On average, women pay $1,585 annually, but men? They’re looking at $1,849—that’s about 17% more.

It’s the younger drivers, aged 20 and below, who feel this difference the most. Young men face premiums as high as $3,996, which is 30% more than the $3,082 young women are charged. 

The gap does narrow with age, but even older men (aged 70+) pay around $1,285 compared to $1,157 for women—a 10% difference that still lingers, even later in life.

Next, we’ll dig into how age, by itself, also plays a role in determining premiums.

Impact of age on car insurance premiums

With premiums averaging $3,522 for drivers aged 20 and younger, compared to just $1,194 for the 60-69 age group—the lowest of any age bracket—it’s clear that age matters, according to the 2024 Mozo Car Insurance Value Analysis. 

But it’s not all doom and gloom: the sharpest reduction in premiums happens early, falling by 32% on average once you hit 21-24. 

Still, younger drivers are left paying more due to their lack of experience, with costs steadily declining until around age 60. 

After that, premiums tick up again around 70, when age-related declines in mental and physical faculties generally start to show.

Why younger drivers and men pay more for car insurance

So why do gender and age play such a big role in determining car insurance premiums? It all comes down to risk. Young drivers (regardless of gender) are generally more likely to be involved in accidents due to inexperience and riskier behaviours on the road compared to their older counterparts.

Meanwhile, for male drivers, the logic is the same. Male drivers (regardless of age) are statistically more prone to riskier driving habits compared to their female counterparts.

What can you do about it?

We get it—being lumped in with other drivers your age or gender feels unfair. You’re paying for the actions of others, even if that’s not how you drive. And, unfortunately, that’s just how insurance works. 

If you live in an area with lots of crashes, your premium goes up no matter how safe you are behind the wheel. Drive a red car? That might nudge your premium higher too, even though colour has nothing to do with your driving ability.

So, what can you do? For now, you might just have to grin and bear it. But over time, you can let your own record start doing the talking. First of all, you’ll naturally age into lower-risk brackets. If you’ve avoided making claims and your situation stays largely the same (ie, no flashy Ferrari upgrades), you’ll probably see those premiums drop—assuming inflation doesn’t cancel it out, of course.

Then there’s the No Claims Bonus (NCB), a transferable discount offered by some insurers. It rewards you for staying claim-free, and if you switch to another insurer that offers it, you can take that discount with you. Over time, it can make a real difference in bringing down your premium.

Bottom line

Of course while demographics and driving history will have an impact on what you'll be quoted, Mozo found that you can still save money by shopping around.

So why not get started by comparing a few options below. Or if you want to dig deeper into the factors that influence your car insurance premium, check out the full 2024 Mozo Car Insurance Report here.