There are many rumours 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?
Although 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.
--Auto insurance, average premiums --
Canada: Men with $123 vs. Women with $117 results in difference of 5%
Ontario: Men with $151 vs. Women with $146 results in difference of 3%
Difference 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!
--Home insurance, average premiums--
Canada: Men with $77 vs. Women with $71 results in difference of 8%
Ontario: Men with $69 vs. Women with $70 results in difference of -1%
The 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.
--Life insurance, average premiums--
Canada: Men with $71 vs. Women with $57 results in difference of 25%
Ontario: Men with $81 vs. Women with $66 results in difference of 23%
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?
Alex Saltykov is a Co-Founder and CEO of InsurEye Inc http://www.insureye.com. Alex spent years advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, innovation, IT and operations.
InsurEye Inc. is a Canadian company that offers people transparency and insights around insurance using modern technology.
Our new tool InsurEye Peer Comparison will show you what your peers across Canada pay for their insurance. This way you understand if you overpay and what insurance providers you should choose to save on insurance!
Although 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.
--Auto insurance, average premiums --
Canada: Men with $123 vs. Women with $117 results in difference of 5%
Ontario: Men with $151 vs. Women with $146 results in difference of 3%
Difference 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!
--Home insurance, average premiums--
Canada: Men with $77 vs. Women with $71 results in difference of 8%
Ontario: Men with $69 vs. Women with $70 results in difference of -1%
The 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.
--Life insurance, average premiums--
Canada: Men with $71 vs. Women with $57 results in difference of 25%
Ontario: Men with $81 vs. Women with $66 results in difference of 23%
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?
Alex Saltykov is a Co-Founder and CEO of InsurEye Inc http://www.insureye.com. Alex spent years advising insurance clients both in North America and Europe while he was working for one of the leading management consulting companies. His areas of expertise are insurance, innovation, IT and operations.
InsurEye Inc. is a Canadian company that offers people transparency and insights around insurance using modern technology.
Our new tool InsurEye Peer Comparison will show you what your peers across Canada pay for their insurance. This way you understand if you overpay and what insurance providers you should choose to save on insurance!