insurance: an unfair deal for the fair sex?

Research reveals women drivers are 'overpaying £300 a year' for motor insurance.

Not only do female drivers have to put up with many men's baseless aspersions about their ability behind the wheel, but it seems they cannot trust insurance companies which claim to specialise in serving the safer sex.
Despite the dramatic fiction of Thelma and Louise, all the statistical evidence shows that women tend to be less dangerous drivers than men. So you might expect specialists insurers, who set out to reduce their exposure to the riskier gender, to offer cheaper cover.

But that is not always the case, according to new research revealed to The Telegraph. Nearly 19m female drivers in Britain could be paying over £300 more a year than they need to for car insurance, claims online car insurer swiftcover.
It adds that car insurance companies such as Sheilas' Wheels and Diamond, who target women through female-friendly advertising campaigns, may not always be as competitive as other insurers.

Women are considered a good insurance risk and this is reflected in the cheaper rates offered by providers. This is for two reasons: despite the clichés about women drivers, they are less likely to have accidents, and those incidents that do happen tend to be less serious, with far more involving parking and "narrow streets", therefore resulting in a smaller claim.
With drivers across the country feeling the pressure from increasing petrol prices, now is a good time to shop around for cheaper insurance.

Peter Gerrard, head of insurance research at the price comparison site moneysupermarket. com, said: "Specialist women-only insurers such as Sheilas' Wheels promote themselves to women as a value alternative to traditional big brand insurers.
"With added extras such as handbag cover, they also cater specifically for women's needs".

"However, while these insurers may have some perks, they will usually be beaten on premiums by standard insurers".
"For example, a 30-year-old woman with a Focus, Astra or Megane will find the cheapest women-only brands will quote on average £472, compared with £275 from traditional providers."

Asia Manzoor, spokesman for Sheilas' Wheels, said: "No insurer can claim to offer the cheapest quote for every driver.
"However, by focusing solely on women, Sheilas' Wheels reflects the relative safety of female drivers when compared with their male counterparts through attractive premiums".

"The key thing for any motorist – whether male or female – is to shop around at renewal for their car insurance and not only look for a good price but also a quality product.
"Our female-focused policies feature built-in handbag cover, a network of female-friendly repairers and a 24-hour confidential counselling line for drivers suffering trauma on the road."

Setting aside the insurance companies' opposing claims and competition for business, there is good news for women drivers.
An analysis of 12m motor insurance quotes by moneysupermarket for the past year reveals women enjoyed cheaper premiums than men – and this was most marked at younger ages.

The average quote for a 20-something woman was £320 over the past year – 16 per cent cheaper than for their male counterparts.
Mr Gerrard said: "It is clear that insurers view women as far more mature motorists at an earlier age."

Regardless of gender, the findings also highlighted older drivers getting better value for money for their car insurance compared with younger ones. Female drivers in their 50s were paying £203 per year on average compared with £320 for a female driver in her 20s. Similarly, a male driver in his 50s was paying £199, compared with £370 for those in their 20s.

Mr Gerrard added: "Older drivers generally find their cars cheaper to insure, so this can make it tough for specialist insurers to offer better value for elderly drivers.
"Motorists who are prepared to shop around for the best deal each year will always come out on top, whatever their sex or age."

Another policy specifically focused on meeting the needs of female motorists has been launched called MORE TH>N Women Drivers' Insurance.
This aims to confront the aspects of driving which women find most worrying by offering a number of special features such as mobile phone locator, priority roadside assistance and a replacement vehicle within two hours.

Other benefits include female friendly repairers, £300 of handbag cover, as well as child car seat replacement following an accident – all as standard.
Jane Foster, of MORE TH>N Women Drivers' Insurance, said: "We have found that women's main concerns when thinking about car insurance are their safety, and that of their children, in the event of an accident or breakdown.

"As a result, this policy has addressed these worries with above and beyond roadside recovery that sees female-friendly agents fitted with mobile phone locators and on-board child entertainment."
There are many ways for women to reduce their premiums but these frequently go overlooked and unmentioned to insurers, and female drivers need also to ask themselves if the added extras are worth the extra cash.

Emma Holyer, spokesman for LV, said: "In terms of ensuring you get the best price, females tend to do lower mileage in the main part than their male counterparts – so always ensure you tell your insurers the right mileage as this could knock money off your premium.
"Also, as women tend to drive smaller cars, they will benefit from cheaper premiums than men in larger cars with bigger engines.

"Ultimately, it will depend on your situation as prices will vary depending on which insurer is quoting and your circumstances."
"The car insurance market is very competitive and some insurers might choose to aim their marketing at a certain type of driver – for example, someone with a certain amount of no claims, female drivers or even drivers of ‘eco friendly' cars.

"Often with these insurers, even though you are not marketed too directly you can still get a quote – for example, men can get a Shelias' Wheels policy."
Mr Gerrard said: "If you are seeking a no-frills deal, then a traditional insurer may be best value for you. As with any insurance, it pays to do your research and find the best cover suited to your needs."

WHY MALE DRIVERS PAY MORE FOR COVER

According to the Home Office, over the past five years male drivers have accounted for:
# 97 per cent of all dangerous driving convictions
# 94 per cent of all motor accidents involving death or bodily harm
# 89 per cent of all drink and drug driving convictions
# 83 per cent of all speeding convictions
# 85 per cent of all careless driving convictions.

Mobile fines hit premiums

One of the biggest motor insurers in Britain is warning drivers to beware of a crackdown by police on drivers who break the law by using mobile phones.

AA Car Insurance reports a 30 per cent increase to more than 160,000 drivers receiving on-the-spot fines. These fines are now fixed at £60 with three penalty point endorsements on the licence.

AA Car Insurance adds that some insurers will refuse to offer further cover, while others will hike premiums by 18 per cent.
Simon Douglas, a director of AA Car Insurance, said: "Driving while using a hand-held mobile telephone places you at much greater risk of having an accident and thus making an insurance claim.

"It significantly slows reactions and you are less able to control the car properly, especially in an emergency.
"Insurance companies rightly take such offences very seriously. "The increased premium remains for the duration of the offence period, so if, for example, your premium increase is £60 following the offence, you will ultimately pay £240 – that is £60 per year for three years, plus the fine."

He added that, after an accident, police now routinely check mobile phone records to find out whether the use of a phone was a contributory cause.

HOW TO CUT COSTS

Shop around
The Association of British Insurers says you can save 35 per cent by comparing as few as five insurance providers

Buy online
Many car insurance providers offer discounts to customers that buy online

Mileage limit
Consider a mileage limit or to only drive at certain hours of the day. Norwich Union offers a pay-as-you-drive scheme which reduces premiums by around 20 per cent if youngsters drive only during off-peak hours

Car security
Make sure you have an alarm and immobiliser

Drive a car with a smaller engine
A newer, more reliable car that is less likely to be used by "boy racers" will have a cheaper premium

Never use a mobile phone while driving
According to the AA, more than 160,000 motorists were fined for doing so last year and some insurers will withdraw cover, while others will hike premiums by 18 per cent

Case study

Not prepared to pay extra for a specialist insurer

When her car insurance came up for renewal, Cara Williams, pictured above, thought an easy way to cut costs would be to go to a specialist female insurer.

Miss Williams, 21, had been driving for three years and acquired a two-year no-claims bonus. After searching price comparison website moneysupermarket, she was surprised to find that the specialist insurers came up £300 more expensive than the quote from Kwik-Fit, which she accepted.

Miss Williams, of Llangollen, North Wales, said: "All the added extras from the specialist insurers, such as handbag cover, seem very appealing but I think that £300 a year is a lot to pay for them."



original article
Car insurance: an unfair deal for the fair sex? - Telegraph