By: Matthew Kaplan

Understanding High Car Insurance Rates 

 

Anyone with moderate knowledge of car insurance rates would know that young male drivers are the drivers on the road who get a negative narrative. More specifically young male drivers from the age of 18-24. There are many factors to why young men on the road pay the highest car insurance rates, but because of these high rates, young men also face additional financial challenges.  

There are surely young male drivers who believe they are responsible and may deserve to pay lower car insurance rates, so let’s discuss the statistics and facts and then discuss the perspective of a young male driver who is experiencing paying high prices and disagrees with how much they need to pay their insurance company.  

 

“Insurance companies use historical data and statistics to give you your rate. Young drivers account for only 10% of drivers on the road, but conversely they’re involved in roughly 25% of collisions.” 

Matt Hands, Sr. Business Unit Director, Ratehub.ca 

 

Age

To begin, here are some statistics from ratehub.ca. In this article, there is a chart which shows the average annual insurance rate costs in Ontario for ages 18-30.  

(This graph shows the average monthly cost for car insurance in Ontario. The data is collected from comparing the age of the drivers spanning from 18-30 years old.)

In the chart shown, we can see the total difference between the age of 18 to 30. 18-year-old drivers in Ontario on average pay $502 monthly on their car insurance while the average 30-year-old driver in Ontario will pay about only $109 monthly on their car insurance. This is obviously a drastic difference. Now, let’s take a deeper dive into focusing on the young male drivers. First, we can see how gender plays into effect.  

Statistics from insureye.com show the difference between male and female drivers auto insurance premiums costs in Ontario and in Canada. On average, men pay around $123 countrywide for their monthly car insurance premiums while women pay about $117 in Canada on average, a five percent lower cost compared to men. In Ontario it isn’t too much different as men pay $151 and women pay $146 which is a three percent difference.  

 

Gender

When it comes to statistics, there is a major reason why male drivers, mainly younger adult males have to pay such high car insurance premiums. One of the main reasons is the number of accidents they get into. A report from npr.org shows us on a graph that men drastically get into more car accidents compared to female drivers.  

 (A line graph comparing male and female drivers and the amount of accidents they got in at different ages. The data is per 100 million miles driven.)

This chart specifically shows the viewer fatal car crash involvements per one hundred million vehicle miles. In the chart, men in the age range of 16-19 and 20-29 top the chart in the number of accidents that occurred in comparison to female drivers in any age group. With this being said, it is a fair reason as to why insurance companies make young male drivers pay higher car insurance rates. This shows that statistically, young men are more reckless drivers than any gender or age group. It all ties together.  

Some young male drivers may feel like they are different and much more responsible compared to the other drivers mentioned in the statistics, and they may feel like this is an unfair narrative to be placed on them as a driver. They may feel this way because as soon as they get behind the wheel legally, they already must pay such high amounts without even being able to show that they are responsible and safe drivers on the road. This is a fair point as not every young male driver is a “bad” or “reckless” driver. I feel this way about myself. I think I am a safe and responsible driver, but I am also very much aware that statistics show young male drivers are more “dangerous” drivers on average.  

 

History

Some other factors that can affect the costs of car insurance are driving history.

 

(This graph displays the average annual (Yearly) Ontario Insurance costs based on the drivers driving history as shown in($).)

Young male drivers having to pay such high car insurance rates could lead to some issues outside of driving though.  

• Having trouble with paying certain bills or expenses.  
• More difficulty paying for something such as tuition in a post-secondary program. 
• Affording rent costs on and off campus.  

Some people I have interviewed in the past have also told me that they have had to pick up extra jobs to be able to afford their lifestyle due to paying such high costs for their car insurance. 

 These are all serious issues that can be a result of having to pay high car insurance rates as a young male driver. With that being said though, there are some methods that drivers can try in order to show on their record they are more experienced and safer on the road.  

Drivers can take drivers training courses and classes to learn the rules of the road and learn road safety methods. These can show on your record and can reduce your insurance rates. Another thing a driver can do is seek out any possible discounts from their insurance partner. Of course, drivers can also make sure to keep a clean driving record, so over time they will have their insurance rates lowered.  

Although things may not seem like they are the best as a young male driver, it does not mean you are stuck in that position forever. There are statistics you may think are holding you back or giving you a default impression when you hit the road, but there are always ways you can improve not only your own driving, but your record too. If you do enough research, ask enough questions, and drive safely you will be able to live your life easier and pay less on your car insurance and be able to have more money to live a healthier lifestyle.