Car insurance companies assess their policy applicants according to one thing called risk. What would make someone risky? Well there are several factors that can account to this. One of which is your credit history. If you were busy this past few years messing up with your credit record then you will be labeled risky by car insurance providers. With this the possibility of paying more than the usual is high.
Age also matters. Young drivers are given high rates for auto insurance policies simply because they automatically fall on the risky category. This is justified by science. Well according to studies due to the biological make up and brain level of maturity, young people are highly correlated with risky driving behavior.
Thus insurance companies do not just assign rate randomly or prioritize one group over the other carrying their baggage of biases. No, this is not the case, if so insurance providers are also putting their business at a random chance of success or failure. Businesses do not work like this. Everything must be studied carefully, everything must be justified accordingly and everything must be accurate and with high probability if certainty cannot be a hundred percent.
We said that insurance rate revolves around the concept of risk. Once you have proven yourself to be a low risk then you will get your shot of paying low premiums. Women, as based on several studies, are low risk drivers thus car insurance companies offer cheaper rates for them. This explains everything’s. Statistics show that women’s involvement with car accidents are less likely then men’s involvement. In addition to this, women also tend to be more cautious in driving than males.
All of the above-mentioned reasons why women pay less for car insurance policies lead providers with a special design for car insurance of women. The additional feature of women’s premium involves no-claim bonuses. This can be obtained if a woman driver filed no claims for a specific period of time. There is also a “handbag cover” which is included in the comprehensive cover. This handbag cover takes care of the situation where the bag of the driver plus all its contents was stolen or damaged while inside the car.
These are just some of the privileges women enjoy when it comes to car insurance policies. Remember this is not about gender per se; this is about research findings and trends of who are risky and who are not.