The gender gap: male vs. female car insurance rates

8 minute read Published on Oct 4, 2025 by BrokerLink Communications

Young happy couple driving in their car.

The number of motor vehicles registered in Canada as of 2022 reached 26.3 million, which is a 0.3% increase from the year prior. The average Canadian household cost for car insurance in 2021 was $1,600. Despite these numbers, not everyone pays the same amount for their car insurance policy. Car insurance premiums in Canada are determined using several factors--one of which is gender. Historically, accident rate statistics reveal that male drivers, specifically young drivers, are more prone to being involved in car accidents than their female driver counterparts, leading to higher premiums.

But when we're looking at car insurance rates as a whole, gender isn't the only piece of the puzzle. We need to look at other demographics as well, like driving experience, age, location, and more. For example, young drivers, despite their gender, tend to pay more for their car insurance rates compared to older drivers, given that they lack experience behind the wheel and are, therefore, more likely to cause an accident. Ultimately, understanding how these factors interplay with one another can help those looking for auto insurance coverage better understand how their premiums are being calculated and what they can do on their end to acquire affordable coverage.

Keep reading to learn more about how auto insurance premiums are calculated for male and female drivers in Canada below.

The legal landscape of gender-based insurance premiums

Given gender discrimination laws in Canada, you may be wondering whether it’s legal for an insurance company to partially base a customer’s premium on their gender. The answer is yes, and it is legal for an insurer to base a customer’s car insurance rates on their gender. The Canadian Human Rights Commission explicitly states that this is permitted within the insurance industry.

Various lobbying organizations have attempted to prohibit insurance providers from considering certain factors in a customer’s premium. Most of these factors are ones for which people face discrimination in other realms, including gender and age. Despite these attempts, none have been successful, and so insurance companies have been able to continue factoring these details into their risk calculation algorithms.

Because car insurance is regulated on a provincial level, whether or not insurance companies use gender as a factor when determining auto insurance rates can vary. For example, British Columbia operates under a public insurance system, meaning all motorists purchase car insurance from a government agency. According to ICBC's website, gender is not used when determining rates. In contrast, in provinces like Ontario that operate under a private insurance system, meaning drivers can choose who they purchase coverage from, insurers are permitted to consider gender when setting premiums.

Now, when we're looking on an international scale, how premiums are calculated also differs. According to Insurance Europe, as of December 21, 2012, EU insurance companies are no longer able to consider gender when pricing any insurance products, including auto insurance, following a ruling by the European Court of Justice (ECJ) in March 2011. Ultimately, these variations in pricing structures highlight the complexities and nuances of the global insurance industry as a whole in terms of balancing historical data, legal regulations, and ethical practices.

Statistical analysis of auto insurance rates and gender risk factors in Canada

Of the 1,851 deaths that were reported to Statistics Canada and caused by transport-related accidents in 2018, 1,313 were males, and 538 were females. Statistics Canada data also reveal that male drivers are significantly more likely to engage in driving under the influence of drugs or alcohol than female drivers.

In 2017 and 2018, 20,056 males were found guilty of impaired driving. This is roughly four times more than the 5,550 females found guilty of driving under the influence. When looking at age and gender together, male drivers between 16 and 24 exhibited the highest risk profiles, with increased rates of accidents and traffic violations like distracted driving, speeding, and driving under the influence, as reported by the Ministry of Public Safety and Solicitor General of British Columbia in 2009. In contrast, female drivers of the same age category demonstrated substantially lower incident rates, which is partly why women tend to pay less for their insurance rates, whereas young male drivers tend to pay more.

Other factors insurance companies consider when pricing car insurance premiums

How car insurance companies work is by creating a risk profile on each customer using different factors. The higher the risk you are, the more you can expect to pay. So, if you're a young driver looking to purchase your first car insurance policy, don't panic. Let's take a look at some of the other many factors insurance companies use to determine car insurance rates:

Location

Your location matters when it comes to your car insurance rates. Ultimately, an insurance agent wants to know where you will be driving your car more frequently, which is why they will ask for your address. They will then assess factors like the crime rate in your neighbourhood, as well as the amount of traffic.

Policyholders who live in high-traffic or high-density areas, like Major Canadian cities such as Vancouver or Toronto, may pay more for insurance than those in rural areas with less traffic. For example, the average car insurance rates per month in Ontario are $150 or $1,796 annually. But in Toronto, the average rates, as of 2023, were $2,325, while those in North Bay, which is a smaller community, are $1,509 annually, showcasing how rates can vary within provinces. Additionally, the likelihood of a climate-related incident in the place you live, like flooding or wildfires, could also impact your average car insurance rates since it influences the probability of your car being damaged.

Driving record

Regardless of age group or gender, your car insurance rates can vary based on how well you drive. A clean driving record often leads to lower premiums, as insurance companies will view you as a lower risk to insure.

Conversely, a driving record with multiple traffic violations and car accidents can result in higher auto insurance rates, given that you are a risk to other drivers on the road. Insurance companies value safe drivers who are less likely to cost them money. So, keep this in mind at all times, whether you're a new driver or someone with years of experience.

Insurance history

The purpose of car insurance in Ontario and every other province in Canada is to help you pay for vehicle repairs and other expenses should you be involved in a car accident. The more accidents you have, the more insurance claims you'll have noted on your driving history.

When insurance providers look at your claims history and see numerous claims for at-fault accidents on your record, your risk level will increase, leading to more expensive premiums. Again, driving safely, following traffic rules, and wearing your seat belt at all times are key to being a safe driver and avoiding expensive rates.

Vehicle make and model

Different cars result in different insurance rates. A general rule of thumb is that more expensive cars, especially sports cars with higher speed capabilities, will be more expensive to insure than cheaper cars. In addition, cars that are among the most commonly targeted by thieves may also come with higher premiums. That said, some cars will result in lower premiums, like those with high safety ratings or those with anti-theft devices.

Age groups

As we mentioned, the age category you fall into also plays a factor in your insurance rates. For example, because young drivers have less experience on the road, they pose more of a risk to insurance providers than fully licensed, middle-aged drivers with more than 10 years of driving experience. Ultimately, knowing how these key factors play a role in your insurance costs can help you make better decisions when shopping for coverage later on.

The role of artificial intelligence (AI) and telematics in insurance pricing

As with any industry, the use of artificial intelligence (AI) is changing the way businesses conduct their everyday activities. Let's take a closer look at how AI and telematics work in the industry sector:

AI in risk assessment

According to Wahve, AI models can analyze large data sets to predict a driver's risk level when purchasing coverage. By looking at different factors beyond gender, AI models can not only streamline the underwriting process but also help providers create a fairer pricing model.

Usage-based insurance

Pay-as-you-drive programs collect data in real-time and monitor your driving behaviours such as speed, braking habits, and distance driven. This strategy enables insurers to provide tailored premiums based on how you drive, rather than other characteristics.

How to save money on your car insurance premiums

Contrary to what car insurance myths say, you can't negotiate car insurance costs. However, there are ways you can lower your costs and acquire the best deals available. Here's what you need to do:

Bundle you policies

If you have other policies like home insurance with a provider, bundle your vehicle insurance with the same company to lower your premiums.

Drive safely

Driving safely and having fewer claims on your driving history can help you save money on your car insurance premiums, as most providers reward safe drivers with discounts on their coverage.

Take a driving safety course

Driving safety courses teach new and experienced drivers how to navigate highway safety laws and challenges on the road to reduce their risk of getting in a collision. Taking an accredited course can be used to get a discount on your insurance costs.

Good student discounts

Another way both male drivers and female drivers can save on their car insurance is by maintaining good grades in school. Most insurers offer good student discounts to customers who maintain a certain GPA.

Shop around for insurance

Before settling on a policy, do your due diligence by shopping around. This means researching insurance companies near you, contacting them to ask about the insurance products they offer, and requesting a free quote from each.

Next, compare these quotes to determine which offers the best coverage for your needs at the most competitive price. If you need help doing this, reach out to a BrokerLink insurance advisor who would be happy to do this for you.

Only purchase coverage required

To cut down on costs, consider only purchasing policies and coverage limits you require. By opting out of certain additional policies and lowering your coverage limits, you can avoid paying for coverage you don't need.

How BrokerLink can help you find affordable car insurance policies

At BrokerLink, we help customers find affordable coverage. With years of industry experience and access to numerous policies from some of Canada's top providers, our brokers can help you look at multiple policies, compare rates, unlock discounts, and answer any questions you have about your insurance coverage. The types of auto insurance plans we can help you purchase include:

Contact BrokerLink over the phone to speak with a broker directly or use our online quote tool for a competitive quote today!