While many people roll their eyes while muttering female drivers under their breath, auto insurance companies think otherwise. It’s become a trend among insurers to offer lower premium for women than men. It’s not because they think women are sexy and they deserve lower rates or because they are women. Insurance companies are not sexist. They do not offer discounts to woman drivers because they are women. Rather they base this on the theory that women drive safer than men.
According to Insurance Institute of Highway Safety or IIHS, female drivers commit lesser traffic violation than men. And clearly from the recorded rate of road accidents, 85% of them occurred with men behind the wheels. Some say that its because there are more men drivers than women, but insurance companies still think that females are more responsible drivers than men. Apart from that, statistic also shows that female drivers almost never get speed tickets. This means lesser worries for the insurance company. Hence they give credit to women who drive slower than men.
If you are a woman and you are looking for automobile insurance coverage, there are some things that you need to be aware of. First of all, not all insurance companies takes your gender as a compliment, in some states they even take that against you. So you should make a thorough research before purchasing your insurance policy.
If you think that an insurer is charging you with higher premium because you are a woman, then you should immediately report them to the Department of Insurance in your state. They will be the one to handle these cases.
Tips when looking for Automobile insurance for Women
1. Know your states minimum auto insurance requirements.
The requirement varies from state to state. Some states only requires 25/50/25 other can go up to 50/100/50. So it is best that you first check your states minimum requirement before looking for the insurance policy. This will give you an idea about the liability and personal coverage. It is always best to get more than the minimum state requirement when availing an auto insurance.
2. Know the different types of auto insurance policies and its respective coverage
Generally there are two known types of auto insurance coverage: the collision insurance and the comprehensive insurance. Basically both of these two insurances influence your auto insurance rate. And both of them are also subject to a deductible.
The comprehensive insurance, everything will be covered except the collision. It covers theft, vandalism, fire, riots, missiles, weather damages and other similar incidents that may result to damage to your vehicle. However it does not cover any damages caused by acts of God, vandalism or theft caused by a family member or employees.
Collision insurance on the other hand protects the driver in cases when he or she is at fault. This includes coverage for damages to other people, objects and vehicles. It also includes payment for towing, salvage and storage if the car has been substantially damaged. Collision insurance will take care of the cost of repair or even replacement. However if after investigation, it was found out that the accident was due to mechanical failure or improper maintenance, the insurer might refuse to pay.
3. Increase you deductibles
Before deciding on this, you should first understand you’re past driving records. How many times have you been into an accident? How experienced are you as a driver? Knowing all about these information will ensure that you are making the right decision.
Your deductible is your out of pocket expenses before the insurance company pays for the cost. Increasing your deductible will lower your premium. This can range from $0 to up to $2,500 per accident. For example, if you would be paying $100 deductible on your coverage, it will cost more than a deductible of $500. The difference in cost can be significant too. If you select a deductible that will have a less significant influence on your out of pocket if a claim happens, the insurer will typically use that into your policy rates.
With the above example, you can easily conclude that a policyholder who chooses a lower deductible has higher probability of using his or her coverage at a higher rate. Hence, the insurer will charge more for that specific deductible amount. The charge to the policy with the lower deductible is $100 per incident rather than $500. Therefore, an insurance holder may well file five claims for the similar amount as a single claim with the $500 deductible.
If you want to maximize your savings, it is best that you take your driving history into consideration. If you are a good driver and haven’t had any accident in the past two to three years, the savings will outweigh the cost, on the other hand if you’ve gotten into accidents every year, then it clearly would not outweigh your cost.
4. Put some thought over the car you buy
If you buy new car models or expensive cars, then you could easily assume that you will be paying for higher automobile insurance. Expensive cars require expensive maintenance, so insurance companies will definitely charge you for that. Another thing to consider is buying a sports car, while it is not common for women to want to buy speedy cars. It is something that you should know about. Insurance companies consider these cars as high-risk vehicles, therefore they are charging higher premium for that.
You might also want to settle for a fuel efficient vehicle. These usually have smaller and more decent engines, which requires very low maintenance. Try not to make any modification to your vehicle as well. While you may want to add to add a suspender to your truck to make it look better, it is best not to do it for your insurance sake. Small modification like changing your spoilers or alloy wheels can increase your insurance premium.
Instead you can add safety accessories like air bags, car alarm, head restraints, laminating your windshields, theft devices, electronic stability and so on. For every addition of this to your vehicle, you will get additional discounts on your auto insurance rates.