A topic discussed on many blogs in recent weeks has been the legality of “women only insurance”. On Insurance Chat there has been reference to the fact that on the 1st of March, a decision will be made in Europe about the legality of using gender to determine insurance premiums. The European Court of Justice will rule on whether or not it’s legal to consider gender when calculating insurance premiums.
This decision will affect how many insurers conduct their business – especially the “women only” insurance companies. I doubt whether such a finding can be made as there is in my opinion much statistical data providing evidence as to why women drivers should qualify for cheaper car insurance premiums!
Data on car insurance claims has revealed that there is a lesser risk of insurance claims from women drivers. Women are seen as “safer and more mature motorists”. The car insurance premiums for women are both cheaper and decrease with age at a faster rate than men’s.
On this Blog we have previously tried to identify why women are submitting fewer accident claims, and I would like to quote
“I believe that the testosterone driven male species might pose a greater accident risk as a result of the following contributing factors;
* Excessive speeding
* More instances of drunk driving and late night driving
* Greater vulnerability to road rage etc
I am also convinced that the lower risk posed by female drivers could be as a result of:
* Driving shorter distances
* Driving at lower speeds
* Greater responsibility in transporting children in urban areas
* Less driving late at night and whilst intoxicated
* The ability of many non-permanently employed women / stay-at-home moms [not many nowadays] to structure their driving away from rush hour and dangerous areas.”
It is most important for women to know that if they are driving a lot less than their male counterparts – they could benefit from car insurance products that are developed around the use of their vehicles!
Usage based or distance based car insurance products such as Pay As You Drive recognizes that less driving amounts to less risks and therefore qualifies for reduced car insurance premiums.
Irrespective of whether the European Court finds that women only car insurance is discriminatory or not – there will always be cheaper car insurance for those who drive less!!
It might be a good time to reflect on your driving behaviour and find a car insurance product that reflects that behaviour!!