What else affects the price women pay for car insurance?
There are only few areas where a woman is not discriminated against in some way; car insurance is one such area. Women receive more favourable car insurance premiums than men. On a like for like basis, a woman under the age of 45, driving the same car, and living in the same area as a man will receive a cheaper insurance premium.
Statistically, insurance companies see that women drivers are cheaper to insure than men.
Predominately this is based upon two things.
Government Research
Figures produced by the Government show that women are less likely to be convicted of a serious offence. The figures show that:
- Only 7% of convictions for driving offences are Women
- Only 2% of dangerous driving convictions are Women
Insurance Histories
Further to this, the insurance companies themselves have provided interesting statistics to help them rate the risk of a woman driver against a man.
- Women tend to drive more slowly
- Women, while having a similar physical number of accidents, will have less costly claims
- Women drive less than men
Other factors
There are also other non gender related factors that affect both women and men equally.
- Where you live
- Where you park your car
- Car engine size and value
- Any previous claims or convictions
are all factors that affect an insurance premium price. On balance, women do receive lower insurance quotes than men.
Is car insurance for a woman cheaper?
In the UK, women’s car insurance is marketed as a separate product. There are several niche insurers who cater for women drivers. Mainly, this is due to the understanding that women should be treated differently to men when it comes to insurance.
Figures produced by Governmental departments show that:
- 98% of dangerous driving convictions are men;
- over 90% of convicted driving offences are men;
On top of this, research has shown that women tend to drive slower than men and also do not cover as much mileage annually. Taking this into consideration when calculating an insurance premium, means that women are seen a lower risk and therefore an insurance company charges less for car insurance for a woman.
Different age groups
The statistics shows that younger women drivers, those under 45, will tend to receive the reduced premiums. Over the age of 45, the figures for accidents are more balanced that therefore reflect on the cost of insurance.
The future
The figures also show that the gap is closing between men and women but there is a long way to go. It should be said that it is the risk profile of a woman and their proven driving abilities by having less accidents and convictions than means they get more competitive premiums than a man of a similar age driving a similar car, but if that profile changes then insurance prices will go up.
Women’s Only Car Insurance: A Novel Way to Save Money
Motor insurance premiums have steadily increased over the past few years and cost savings have therefore also increased in importance. One of the best ways to save on your insurance is obviously to make sure that your risk profile is as favourable as possible since insurers use risk analysis as one of the main methods with which to calculate your premium. This is why drivers with long no-claims bonuses pay less for their insurance than drivers who had accidents in the last few years; or why you will pay more if you park your car in the street in central London as opposed to parking it in a garage in a quiet country village.
As a woman you can make use of an automatic positive on your risk profile: The very fact that you are a woman! It is interesting to note how conventional wisdom can sometimes get things totally backwards. The reputation of woman drivers is such a case.
Contrary to popular perceptions woman drivers are actually much less likely to be involved in dangerous driving or speeding, which means that they are involved in far less accidents (per capita) than men. This phenomenon is backed by solid research. A Home Office report, published in 2002, found that 88% of all driving offences and 82% of all speeding offences are committed by men!* This means that, as a group, women are a much safer bet, in terms of risk, for insurance companies.
The favourable risk profile of women has long been reflected in insurance premiums charged by mainstream insurance companies. The past few years have seen the progression of the trend towards lower premiums for women to what some would call its logical conclusion: The creation of insurance companies and products targeted exclusively at women. Companies created in this way are able to use the collective purchasing power and lower general risk profile of their client base to create low-premium insurance products.
One of the ways in which women-only insurance companies are differentiating their offering and serving their constituency is by following value-added products that can enhance the motoring experience of women. These include:
- Ladies’ Breakdown Services
- Educational Services
- Handbag Insurance
- 24 Hour help lines
It would be wrong to assume however that a women-only insurance product would automatically lead to a better premium or to the best solution in your circumstances. It could be that you will be better off with a more traditional insurance policy. It is however very likely that it could be well worth your while to investigate women-only car insurance as this investigation will in many cases lead to the discovery of some major savings and also of levels of service and products that will significantly enhance your motoring experience.
Summary:
- Contrary to popular opinion women are much safer drivers
- This fact is reflected in the lower premiums that are on offer in the women-only insurance sector
- Many women-only insurers offer a number value added services
- It is prudent to shop around for the best deal. Both in the ‘women-only’ field and in the general open market.
* A more detailed analysis of the relationship between gender and driving, including a discussion of the Home Office Report, can be found at: http://www.sirc.org/publik/driving.pdf