Unfortunately for men, it would seem the reason they are penalized on their auto insurance premiums is because they are involved with more claims than women drivers. The reasons for this are not conclusive but point towards a few known facts such as the speed at which women are more likely to drive at plus they are less likely to drive sports vehicles.
Accidents rates are generally lower and this is why car insurance providers are able to give preferential rates to women drivers as they do not claim as frequently as men. The problem is that although both sexes actually face similar driving conditions, when a man has an accident, the damage to the vehicle is normally far greater than if a woman had been driving. That is why on an average women’s car insurance premiums tend to be 30 percent lower than that of the male counterparts having same demographic profile.
Women usually drive slower than men so accidents caused by lady drivers are not as serious so in most instances the claims are lower ensuring insurers pay out less; lowering premiums. Since men generally drive at higher speeds, when they have an accident, the loss is high and when the accident involves two vehicles with high amounts of damage, it becomes an insurance company’s nightmare. Women are even considered to be a better risk even when they have only just passed their driving exam.
There are now a number of car insurance providers that have set up purely to aim their auto insurance policies at women and even married women cannot have their husband as a named driver. The reason for this is the greater risk the man poses with regard to an accident, thereby increasing the chance of a claim on the policy.
Some of these insurers find the only way they can increase their overall profits is by having a large number of members because the cost of premiums are lower, their profit margin is correspondingly less. Women drivers should seriously consider getting a car insurance quote from a company that will only insures women drivers. Further discounts can be made when a car is parked in a garage and if the person takes advanced driving lessons in addition to a clean license.
Even though insurance companies have always known that female drivers cost them less in payouts, that doesn’t necessarily translate to the lowest premiums from companies that only insure women as they can be more expensive than a standard auto insurance premium from a well know company. As the costs surrounding insurance generally continue to spiral upwards, it would be a good idea to go online and apply for quotes from a number of insurers, even if they are not women drivers only.
Author: Thulas SukatiThis author has published 12 articles so far.