Why car insurance is cheaper for women

By Olivia Gee ·
Female driver with car insurance

Women having access to slightly lower car insurance premiums is not a new trend. 

Industry reports and driver analysis 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 insurers 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. 

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 insurer 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
Promoted

    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
    Promoted

      With a name like 1st for Women, there’s no mistaking the priorities of this insurer. 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 to insurers. 

      Other features in the comprehensive policy include new-for-old car replacement (if you write-off the car within 12 months or 20,000 kilometers) 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.

      *Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

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      Olivia Gee
      Olivia Gee
      Money writer

      As one of Mozo’s money writers, Olivia Gee shares her research and insights across banking, insurance and property to help readers save. She loves getting stuck into a story, unveiling all the facts, breaking down stats and drawing on personal experiences - this is what drives her as a journalist. She has a double degree from the University of Wollongong, with a BA in Journalism as well as Media and Communications.