Women Pay $ 8,000 More Than Men Over Time Car Ownership – Let’s Change That
A recent study by auto insurance comparison app Jerry found that women pay thousands more than men over an eight-year period, the average length of time people own a car. According to the study, women pay an average of $ 142 more per year than men to own a car, and can pay up to $ 7,800 more during the period of ownership. In addition, women pay $ 117 more than men for new cars and $ 23 more than men for auto repairs. In today “Financially savvy woman” column, we chat with Lakshmi Iyengar, data scientist at Jerry, why women pay more for auto expenses and what can be done to avoid being overcharged.
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Why do women pay more to own a car?
The “pink tax” is defined as the additional costs that women pay for health and beauty products. Our study asks the following question: “Do women also pay a pink tax in other areas of their lives, such as car ownership?” The answer is yes, and there are several areas of car ownership that raise this pink tax. Women pay more on average to buy a car and they pay more for auto repairs and services. This is probably due to an inherent bias, as women are unfortunately perceived to have a lack of knowledge on automotive-related topics.
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What are your tips for women who want to save money when buying a new car?
One way to save money when buying a car for anyone is to do your research. If you are knowledgeable about buying a car, it doesn’t matter that there is a perceived lack of knowledge among women. Armed with all the important information, you might feel more comfortable negotiating and likely be less likely to overpay in the end.
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What are your tips for women who want to save money when getting their car repaired?
Similar to buying a car, it’s in your best interest to do your research before visiting a mechanic. Make sure you know the cost of repairs to your car so that you are better informed when it comes time to pay for a service, regardless of its size. Our research found that the pink tax almost disappeared when women knew the cost of services in their area and spoke out if they felt they were being overcharged.
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According to the study, auto insurance is an auto expense for which women pay less. What are some of the reasons behind this?
Men have been found to be more expensive to insure than women in all but four states, which may be explained by the fact that women have fewer accidents than men overall. Specifically, younger men have the highest frequency of car crashes, so it makes sense that Gen Z male drivers pay more than their female counterparts. But a closer look at our age-disaggregated data, Millennials, Gen Xs, and Baby Boomers were actually billed more than male drivers their age. This may be because women are generally paid less than men and therefore do not enjoy the same lines of credit, which ultimately lowers credit scores and affects their insurance rates.
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Even though women generally pay less than men for auto insurance, in what ways can they save money when purchasing insurance?
Much like researching before spending on a car, saving on auto insurance is all about shopping around and getting quotes from multiple providers. You should repurchase your insurance every six to twelve months. Using a comparison tool like Jerry automates the process.
If you’ve already found the insurance company that offers you the best rate, take advantage of the discounts your company could offer you. Discounts for good drivers, low mileage and vehicle equipment are the most common discounts that drivers are entitled to.
GOBankingRates wants to empower women to take control of their finances. According to the latest statistics, women hold $ 72 billion in private wealth, but fewer women than men consider themselves to be in “good” or “excellent” financial position. Women are less likely to invest and are more likely to be in debt, and women are still paid less than men overall. Our “Financially savvy woman” column will explore the reasons for these inequalities and propose solutions to change them. We believe financial equality starts with financial literacy, which is why we provide tools and advice for women, by women, to take control of their money and help them live richer lives.
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Last updated: November 4, 2021