Do Women Deserve Lower Car Insurance Premiums?

With all the data on driving habits around the world, it’s quite clear to see that women are statistically far safer drivers than men.

A survey from insurer AAMI found that women are less likely to drive under the influence than men, with only 26% of women admit to having driven over the legal limit compared to 48% of men.

Men are also more likely to drive above the speed limit with almost twice as many males confessing that they speed most of the time, compared to women.Again it’s men that are four times more likely to be involved in a fatal car crash than women.

Again it’s men that are four times more likely to be involved in a fatal car crash than women.So it stands to reason that premiums should be lower across the board for women than men.

So it stands to reason that premiums should be lower across the board for women than men.Controversially in December 2012, the EU introduced new rules stating that car insurance

Controversially in December 2012, the EU introduced new rules stating that car insurance companies could no longer discriminate on the basis of gender. Until that point, men were generally being charged a higher premium than women.When the ruling passed in 2012, men were paying on average, £27 more for

When the ruling passed in 2012, men were paying on average, £27 more for the same level of coverage.However instead of the premiums actually decreasing as we would expect, the gap between

However, instead of the premiums actually decreasing as we would expect, the gap between them has actually increased by almost four times to £101.So has this well-meaning policy backfired?

So has this well-meaning policy backfired?As it turns out there are more factors that go into your premiums than sex alone and while it

As it turns out there are more factors that go into your premiums than sex alone and while it might play a role it’s not the largest factor.The type of car you drive plays a significant part in the price of a policy. Men generally drive

The type of car you drive plays a significant part in the price of a policy. Men generally drive larger more expensive cars, that makes them more expensive to insure.The type of job you have also

The type of job you have also led to different ways you use your car. A nurse, which is a heavily female-dominated role doesn’t drive as a part of her job and is not likely to be exposed to alcohol throughout the work day.In

In comparison a tradesman, that is largely a male based role, is spending a significant portion of their day on the road, driving larger cars and can often be found socialising after work and exposing themselves to alcohol.

So in many instances, it stands to reason that men are forced to pay a higher premium for factors other than their gender alone.

So what does the gender gap look like for Australian drivers?

Unfortunately for young men, you can expect to pay significantly higher premiums.

For men aged between 25 and 29 they can expect an average premium to be around 7.6% higher than their female counterparts. Young men aged under 25 are the worst hit nationwide, with their premiums coming in at $1979 on average, which is 12% higher than women in the same age bracket.

Young men in NSW can expect to pay premiums that are nearly 60% higher than some of the other states in Australia.

Tips to reduce your premiums for male drivers:

1. Drive a smaller car. Large expensive cars are likely to require higher premiums.
2. Drive cars that have parts that are easy and cheap to source. Often times that means driving cars that are built in Australia or at the very least have their parts
   manufactured locally. European cars are generally going to be more expensive.
3. Don’t modify your car as that is likely going to increase replacement costs and that
   will be reflected in your premiums