A leading online insurance comparison provider released a report showing the difference of the current median auto insurance rate of women from men. According to the figures women pay their auto insurance policy nine percent lower than men’s rate.
The difference in the rate to pay is not about gender as what it may look like. According to the examination conducted by the insurance comparison provider there are many noteworthy differences that could account for the nine percent variation between the median auto insurance rate of women and men. According to the study done moving violations are associated with women drivers’ 10 percent lesser than men. Also as compared to men, women are found to be 50 percent less prone to drive under alcohol or drug influence and to drive without insurance coverage. It is also noted from the examination of men and women driving records that the typical list price of women’s cars is cheaper when compared with the list price of men’s vehicles.
Auto insurance policy rate is determined by confluence of factors and being a female or male driver happened to be just one. Issues of gender discrimination have been raised to question this general practice of insurance providers. In Europe as well as in the United States this concern is now becoming a heated debate.
The practice of using “gender” in identifying how much a policyholder will pay for the insurance coverage is seen by some to be going against the anti-discrimination law. This is the primary reason why consumers, representatives and policy providers are now trying to assess if such case of factoring in gender to determine premiums to prospective clients is really a form of discrimination.
In general females receive favorable auto insurance rates not because they are females rather it is because of what statistics is showing. According to the National Highway Traffic Safety Administration data, more motor vehicle crashes involved male drivers and related costs from these crashes are higher than accidents involved in by females.
Since figures would show that male drivers are greater risks for auto insurance companies than female drivers they get higher auto insurance rates. Auto insurance companies are working with risk assessments and it is not the difference in gender that they are looking at what they consider is the behavior of each and every driver behind the wheels then and now. Moreover it is not only gender that is considered in determining rates it is just one of the many factors.
