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.
Compare comprehensive car insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
Comprehensive Car Insurance
Youi like to get to know you from the very first conversation, which provides you with the opportunity to find comprehensive car insurance cover that could better suit your lifestyle and your needs. Because we’re all individuals, so we all use our cars differently from day-to-day. Youi is car insurance that’s a bit more you-shaped. Mozo People's Choice Excellent Customer Service Car Insurance award winner in 2024.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $50 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Unlisted and aged 25 and over: $700, Unlisted and aged under 25: $2,000, Listed and aged under 25: $600
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed
Available discounts
Comprehensive Car Insurance
ROLLiN’ put their customers in the driver’s seat by offering great value comprehensive car insurance with no additional excess for young drivers. Zero cancellation fees, 24/7 claims support via phone and a policy paid monthly. Plus, you can list multiple cars and drivers under the one policy, as long as they fit the underwriting criteria
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day after a covered event
- Rental car after accident
- Yes - Up to 21 days, max $80 per day after a covered event
- Windscreen cover
- Yes - one claim can be made per Insurance Period, with $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
- States where offered
- SA VIC NT TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ROLLiN' Comprehensive Car Insurance
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $550 - $1,900 (varies By State)
- Agreed or market value
- Agreed Or Market
Available discounts
- No Claim Discount
- Online Discount 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $2,200
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount $75
Comprehensive Car Insurance
Australia Post Comprehensive Car Insurance offers a broad range of coverage and includes cover for anyone who drives your vehicle. It also covers new car replacement if your recently purchased brand new car is written off within the first three years (provided it has travelled less than 60,000km). Get $100 off your first year's premium when you buy Comprehensive Car Insurance online. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess ($0 excess for repair only). Option to reduce windscreen replacement excess to $0 for an additional premium.
- Modifications
- Automatically covered.
- Young driver excess imposed
- $600 for listed drivers under 25, $1,600 for unlisted drivers under 25.
- Roadside assistance
- No
- Other benefits
- -
- Other restrictions
- -
- States where offered
- SA VIC TAS NSW ACT QLD WA
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Australia Post Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards