What Women Should Know About Buying Auto Insurance

Lori Mandell

You’ve undoubtedly heard the phrase, “women drivers”, uttered by men while rolling their eyes as if to say that women are not good drivers. In Men are from Mars, Women are from Venus, author John Gray notes the many subtle and not-so-subtle theoretical differences between men and women. Driving ability may not be among them, but auto insurance companies seem to have bought into the scheme that there are, indeed, differences between the sexes. They base their findings, and, in turn, their rates for insurance premiums, on statistics, however, not on theory. Their conclusions may surprise you.

Purchasing Insurance
Statistics from the Insurance Institute for Highway Safety (IIHS) show several reasons why men pay higher auto insurance rates. What are the differences between men and women and why are insurance rates typically lower for women? Female drivers do not have as many accidents as male drivers; they do not get as many speeding tickets; they get fewer moving violations. More men die each year in automobile accidents than do women. Why? Simple: women wear their seatbelts more often, and their accidents cause less damage than their male counterparts’ accidents because they don’t drive as fast.

So, are insurance companies being sexist by charging women less? They would be if they were charging women less because they are, well, women. But women are being offered cheaper rates not because they are women, but because statistics show that lower rates for women are not a dangerous bet for them.

On the flip-side, IIHS also reports that women are starting to drive more aggressively and there are a lot more women on the road than, say, 25 years ago. from 1975 to 2003, female deaths in motor vehicle crashes increased 14 percent compared to an 11 percent decline for male motorists during that same period. If this trend continues, we’ll likely see a closing of the gap in insurance rates between male and female drivers in years to come.

Claims Service
Claims handling varies a great deal from one insurance company to another. While no specific statistics appear to be kept on how women are treated when it comes to making auto insurance claims, there are plenty of anecdotal reports out there on the Internet. It boils down to one thing—fairness. If you think you are being treated unfairly because you are a woman or for any other reason, your recourse is to file a complaint with your state’s Department of Insurance. You may not see quick results, but they will check into the matter and make sure your claim is handled fairly in the end.

Tips for Women on Buying Auto Insurance
OK, so you know your rates are already starting out lower than a man’s. But what else do you need to know before you buy?

1. Know your state’s minimum requirements for carrying auto insurance.

Some states require as little as $15,000 per person, $30,000 per accident for liability insurance. If you can afford the increased premium, it is always beneficial to have more than the minimum limits.

2. Know the different types of auto insurance and what each covers.

Do a little research before you shop so you know how collision is different from comprehensive and how liability coverage is different from med pay.

3. Have a checklist for discounts and ask about them and any others they might offer:

* Good driver
* Good student
* Multiple policies
* Multiple cars
* Senior driver
* Vehicle safety features (such as air bags, ABS brakes, car alarm, etc.)
* Non-smoker

4. Consider increasing your deductibles to save money.

The higher the deductible, the lower the premium.

5. Ask about claims handling practices.

* Is it simple, no fuss, or hassles galore?
* How long does it take until a claim is settled?

6. Consider buying insurance online for a better deal, but do shop around.

7. Read your policy!

Now you are ready to tackle the task of buying insurance armed with information and with your eyes wide open. And next time your husband or boyfriend rolls his eyes and says “women drivers”, email him a copy of this article.