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Car Insurance For Women

Car insurance is statistically much cheaper for women - as they have less severe accidents than their macho counterparts. So, by and large female drivers will benefit from cheaper insurance quotes and premiums. Despite the fact that there are a number of co mpanies that provide car insurance solely for women, you may still find that you get a better deal from a conventional insurance company or broker. This is due to the fact that these companies have access to some of the best female insurance deals.
However, not all companies will present great value for lady drivers, and, just like anyone else looking for car insurance, it is necessary to shop around to find the best value insurer for your particular circumstances.

Women are cheaper to insure

Some insurance companies may insure only young drivers, some may only want to insure high performance cars, and some companies will insure any kind of car and any kind of driver. But there is now a group of companies who home in on low risk insurance customers. They do this by highlighting to those low risk insurance customers that their premiums are higher due to having to subsidise the higher risk customers. They maintain that if you are a lower risk customer, and you join together with other low risk customers, you can all get lower insurance premiums. This is why there are companies who specialise in insuring women drivers, trying to get as many of them as possible to insure with them by offering lower premiums that they would be able to get elsewhere. The reasoning behind this is that women may make a parallel number of claims to men, but their claims are less likely to be of the same cost as those made my men. If the same company insures you as that also insures men, then you subsidize those men's claims.

Why it works out cheaper

The explanation for women's claims being cheaper is that they have less serious accidents. The cars that they drive are likely to be less damaged, and the other cars involved in the accident are likely to have sustained less damage. Thus lower claims leads to lower premiums. Women have been proved to drive differently to the way men do. They don't drive as fast, they take fewer risks, and they are less likely to be showing off doing fancy driving manoeuvres that end up as costly games.

But how do insurers justify a business model where lower premiums are outcome? Effectively, it's quite simple really. Adding up the overall price of the premiums and subtracting the total cost of the claims work out profit. If the margin per customer is slight, what an insurance customer must do is to get as many customers on their books as possible, which can make the small margins add up to a decent profit. Women make up 50% of all drivers, so targeting all women, in an attempt to prise them away from their current insurance provider, makes a lot of sense. It must work, because quite a few companies have joined this targeting exercise.

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