Car Insurance companies pay great mind in the demographic affiliation of its policy holders, in line with this gender also bears great weight in the premium rate of policies. Women as compared to men are getting lower premium rates, for the primary reason that they are women. Companies that sell policy coverage plans for drivers consider women as fewer risks as compared to men in their risk pooling assessment. It is a given fact, that lower risks would also mean lower premium rates. Others may find it too hard to understand but there are three basic reasons for this gender related discount.
The first reason why women get lower premium rates is that they are too cautious to get involved in massive car related incidents. Studies show that women are most likely to become less confident in their driving skills which make them less cocky in the road while driving. Based on records, women are also less likely to drive at speed rates which are prone to accidents. They maintain considerable speed even just for the sake of being cautious.
Secondly, women are seen by car insurance companies as more disciplined as compared to men in observing and following traffic rules. Based on statistics 90% of the total traffic violations are recorded with male drivers as the at fault party. These violations are speed limits and beating the red light which are two of the most accident related traffic offense. Because of this women are rewarded with lower premium rates which are also made to motivate male drivers to drive more safely. But so far, it is not working for male drivers.
And lastly, female drivers do not have the same mileage as compared to male drivers. Studies show that female drivers are most likely to drive only at short distances as compared to male drivers. Women are most likely to drive during emergency situations or running errands like going to the supermarket which is relatively safer as compared to men driving even across the country.
Looking into these reasons and major considerations of car insurance companies proves that the discount for women is not based on gender biases or male gender prejudice. These reasons are based on statistics and studies which tried to reconcile risk management and gender. But all is not lost for male drivers. Even if they are seen as riskier policy holders, they can prove their individual investment worth to the company. Male drivers can appear less risky by applying the general considerations of insurance companies in giving discounts to female drivers.