Why car insurance is cheaper for women
Women having access to slightly lower car insurance premiums is not a new trend.
Industry reports consistently show women are safer drivers on average, and are thus less risky car insurance customers. So, they’re rewarded with a better deal on their car insurance over their male counterparts who could potentially cost insurance providers more come claim time.
This isn’t a debate about who might be a ‘better’ driver. Take any of those assertions with a hummer-sized grain of salt.
It’s about men statistically being more reckless when driving – getting involved in more traffic infringements and car accidents – resulting in greater damage to vehicles, property and personal injuries.
Analysis of car accident statistics by Budget Direct in 2020 found 73% of road fatalities in Australia from 2013-2018 were male. Men were also overrepresented in accidents where the road user was in control of the crash, which the report concluded was a potential indicator of higher risk-taking behaviours.
In the same vein of investigation, a UK study by insurance comparison site Confused.com found men were four times more likely to break road laws than women. Men were also twice as likely to make a car insurance claim which resulted in a higher insurance payout.
While there are always going to be cases that sit outside this norm, insurance companies need some averaged data to go off when setting cost brackets.
But some car insurance companies are taking their policy offerings beyond this industry insight.
Female-focused insurance provider Stella is taking a fresh approach and considering the needs of female-identifying drivers from when they acquire car insurance right through to their first claim.
Stella general manager Renee Cosgrave says around 90% of their customer base is women aged 24-45. Some of the major issues their female customers have experienced are during the claims process.
“Some women find the repair experience quite daunting and intimidating. They feel they can be taken advantage of, as they sometimes have limited understanding of car parts and work required,” she says.
“Another piece of feedback received from our customers was that some women involved in a first-time accident don’t know what to do or who to call.”
Stella aims to make this a less taxing experience, while also providing more tailored coverage as standard (without the hefty price tag) in their comprehensive policy.
Check out the female-focused car insurance options below for more details on what’s included in these kinds of policies.
Car insurance policies putting women first
Stella Comprehensive Car Insurance*
One of the key factors differentiating this as a women-first car insurance policy is the domestic violence cover. If your car is deliberately damaged by a current or former spouse or partner (or another driver listed on your policy) you don’t have to pay any excess as long as you report the incident to the police.
It’s also a winner for parents, with $2,000 in baby gear and another $1,000 in personal items covered for theft and accidents. If you’ve bought a new car to keep bub safe, you’ll be happy knowing a new replacement of the same make, model and series will be provided should you write the car off within three years. This is on the condition you’re the first registered owner of the vehicle and it’s traveled less than 60,000km.
Remember, Stella only offers comprehensive car insurance, so if you’re after lower-level cover, you’ll have to look elsewhere.
1st for Women Comprehensive Car Insurance*
With a name like 1st for Women, there’s no mistaking the priorities of this insurance provider. Again, men are welcome here but they won’t receive the same benefits.
So women can enjoy lower premiums, a higher excess is applied to male drivers (alongside young and inexperienced drivers). This is in response to 1st for Women recognising men as statistically riskier drivers who make more car insurance claims which come at a higher cost insurance companies.
Other features in the comprehensive policy include new-for-old car replacement (if you write-off the car within 12 months or 20,000 kilometres) and 14-day hire car cover after a not-at-fault accident. And if you are after a lower level of coverage, 1st for Women also offer third party car insurance.
*Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
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