When it comes to car insurance, insurance companies price policies by predicting risk.
So why is it that women often pay significantly lower car insurance rates?
Statistically, women drivers have been proven to have fewer accidents and to make fewer claims, enabling insurers to reward them with cheaper car insurance premiums. Single women typically pay more than married women.
Men may also be more likely to choose car models that are pricier to insure. The higher the cost of the car, the more expensive the insurance will be. Another factor that should be taken into account is that women drivers are less likely to drive recklessly on the roads.
It’s important to note however, that insurance companies don’t base their premiums based on gender alone. For example, speeding tickets indicate risky driving and a higher possibility of causing accidents, so having several tickets on your driving record can lead to higher premiums.
In the South African context:
In Europe there has been a ban on insurance companies using gender as risk rating factors. In South Africa, there is no such law. This means that insurance companies are allowed to base their insurance premium costs on gender.
How can you save on womens’ car insurance?
Nothing beats comparing various car insurance quotes. You should take the necessary time to make sure that you compare various quotes to make sure that you are getting the right type of cover for your needs.
Ask for discounts
You have the right to ask for discounts on your womens’ car insurance. If you aren’t a frequent driver for example, you can get lower premiums.
Buy a cheap-to-insure car
This will definitely get you lower insurance costs.
Reduce coverage costs
Consider combining your car and home insurance for lower costs.
Avoid speeding tickets and try to be a better driver to lower the risk of accidents for lower womens’ car insurance premiums.