Women's Only Car Insurance

Women's car insurance is traditionally significantly less expensive than men's insurance. This is due to statistics in driving...

Women's car insurance is traditionally significantly less expensive than men's insurance. This is due to statistics in driving safety that put women far in the lead as the safer drivers. However, in recent months the rates which women must pay for their insurance has been increased by up to 30%, levelling the field somewhat. This increase in insurance rates is due to a piece of legislation passed in 21st December 2012 which instigated gender equality in insurance premiums: the sex of the driver is no longer permitted to be taken into account when drafting new insurance premiums. Almost 50% of the population of the UK have not even heard of this change to legislation, though it means that most insurance companies pulled existing female motorist insurance rates to match men's. There are, however, ways in which women can still ensure a lower insurance premium, for example by carefully considering the type of car being driven and the habits of the driver.


The battle of which gender is a better driver is an age-old one, with women generally considered to be cautious (often overly-so) while men thought of as 'boy racers'. Whichever side of the argument you take, however, the statistics speak for themselves: sixt.com, a prominent car rental company, concludes that women are indeed the more cautious and therefore safe driver. This conclusion was reached following a serious of questions distributed to 1000 male and female German drivers. There was a remarkable difference in the genders answers to questions such as 'have you ever had your driver's license suspended' and 'have you ever received a fine for breaking the driving laws?', with men overwhelmingly answering these questions 'yes'. Interestingly, there was also a huge difference in how each gender thought about themselves as drivers: 74% of men thought themselves to be the better driver, while only 62% of women thought they were better drivers. This survey has been opposed by Australian rental company Private Fleet, who found that men were in fewer accidents than women - 40% fewer.


In the UK, however, men are firmly in the lead in terms of both driving convictions and convictions for dangerous driving: 92% of all convictions for the former and 98% for the latter.


It is not purely the statistics on accidents and fines which have encouraged insurance companies in the past to offer cheaper rates to women: female drivers have different driving habits compared to men, with many of them more likely to be able to react quickly and safely when in a dangerous situation. However, many insurance companies still find ways around the gender equality directive: the fact that women traditionally purchase smaller, less expensive cars which are cheaper to fix, and so women's insurance claims are usually less frequent and lower when they do occur. The same survey distributed by Sixt found that women were more concerned with having safer cars with better fuel consumption than men.


Age has always had an effect on insurance rates, with drivers under 25 being charged a higher premium. However, after 45 the rates between men and women customarily levelled out. As such, the new legislation should not have as much of an effect on their policy.


While insurance companies can no longer take gender into account, many women-orientated insurance policies offer quirks such as handbag cover specifically tailored insurance. They also often have breakdown cover to prevent women having to wait alone in a dangerous situation. One of the insurance companies which do this is Be Wiser. Diamond car insurance covers handbag protection for up to £300 and have a 24 hour help line specifically for their female customers. Some companies also ensure female friendly mechanics and repairers. Some companies offer black box insurance, which track driving habits and offer a discounted premium to those who are given a good score by the box. Women only insurance policies are a thing of the past following the EU legislative of 2012. However, there are always ways of reducing insurance rates by driving carefully and choosing a safe and inexpensive car.


Resources


You can find insurance brokers offering women's only car insurance on The Investing Site's Insurance Services section here.


Other Articles from The Investing Site

Here are some other articles that might interest you.

  • Home Insurance Fast Facts
    • Home Insurance Fast Facts
    • Home insurance is a special type of property insurance, which undertakes the risk of protecting your home...
      View this article
  • Debt Advice - Help is Available
    • Debt Advice - Help is Available
    • UK consumers find it hard to meet their financial obligations, especially when it comes to late credit card payments, which generate extra fees.
      View this article
  • New Business Bank Account
    • New Business Bank Account
    • Which bank account is right and how do you tell the difference?
      View this article