Men vs. Women: Who Pays Less for Auto Insurance?

Which is the better driver? Some say, “Men have a natural skill,” or “Women are terrible at parking.” Others say men have a need for speed while women are more cautious drivers.

Government statistics reveal the truth — women and men have the same accident involvement rates per million miles driven. But driving myths see only that men have more accidents than women and overlook the reason – men average more miles driven per year than women do which accounts for their involvement in more accidents per year than same-aged women.

Despite the importance of miles driven to accident involvement, insurers charge the same annual premiums to adult men and women, meaning that women on average are being charged more per mile than men are to insure their cars. (See customer comments below.)

It is important to note, however, that insurance discrimination occurs against all individuals whose cars are driven less than average. The only way to end the group discrimination against women and other lower mileage groups and individuals is to charge per-mile prices tied to individual odometer miles.

MileMeter, a Texas-based auto insurance company, is the first to do just this by applying per-mile prices to the miles recorded on the odometers of individual cars, ensuring equal treatment for men and women. In fact, MileMeter is the only company in the nation to offer pay-by-the-mile auto insurance without installing privacy-invading vehicle-tracking devices. Insured miles are bought in advance, added to the odometer, and more miles are bought online when needed. Per-mile rates are based only on driver age, residence location and vehicle type, enabling customers to complete the online quote process in as little as five minutes.

“MileMeter seeks to provide coverage for drivers in a fair, affordable manner,” said Chris Gay, MileMeter president and CEO. “Drivers should be in control of what they pay, instead of relying on coverage rates determined by things beyond their control like gender.”

“For decades, auto insurance companies have been using stereotypes as proxies for group average miles instead of using each car’s odometer to measure miles driven exactly,” said Dr. Patrick Butler, director of the National Organization for Women’s (NOW) Insurance Project. “NOW is gratified that MileMeter is the first insurance company to stop pitting driver groups???‚??especially women and men???‚??against each other.”

Traditional car insurance companies overcharge drivers who drive the fewest miles each year, especially women, older individuals and people in low-income groups. On average, women drive about 6,000 miles less than men in a year and are paying almost twice as much per mile for coverage.

MileMeter’s by-the-mile pricing can save drivers an average of 25-75 percent on most policies. Women car owners could expect to save an average of $200 per year.

See what some of MileMeter’s women customers are saying:

“Why didn’t someone think of this sooner? Because I drive so little, MileMeter was able to save me $2,478 off my annual policy for the exact same coverage. When I called my old insurance company to cancel, they also agreed – MileMeter can’t be beat!” Beverly G., 43, Dallas

“Finally someone’s giving an option for those of us who seldom drive our car. I only use my car when I go and buy my groceries. Other than that my car is mostly parked at home. So I really appreciate what you guys are doing. Keep up the good work!” Irma P., 29, Richardson, Texas

“I had afender-bender the other day and was MileMeter ever on the spot. The very next morning they had an adjuster here to look at the damage, and I had the check in my hand within the week?’?¦ This is the best deal since Neiman’s Last Call!” Jeanie C., 65, Dallas

The pay-per-mile concept is objective and simple, removing discrimination by driver sex from auto insurance policies. Currently, only Texans can reap the benefits of per-mile auto insurance pricing; however, MileMeter plans expansion nationwide in the near future to end auto insurance discrimination for all low-mileage drivers.

About MileMeter

Based in Dallas, MileMeter Insurance Company is the first and only auto insurance company in the United States to sell per-mile auto insurance, with over 100 pending patent claims. Visit www.milemeter.com to learn more.