Women’s Auto Insurance - Should it be Cheaper?
Thursday, March 20th, 2008Womens Auto Insurance should always be cheaper than the equivalent auto insurance offered to a man. Read on for a full explanation.
Auto Insurance companies are good at assessing risk, and good at maximizing their profits.
They make a profit by calculating the risk of the insurance and setting the premium at a level that ensures a good return for them. Auto insurance companies often choose to offer policies to different risk groups by balancing one risk against another, which often leads to lower risk customers paying a higher premium so that they can reduce the premiums of the higher risk customers.
Fortunately, there are some car insurance companies that deliberately target low risk customer, such as women. Although they may collect less revenue, the fact that they incur less risk means that they benefit from a more stable income stream.
Women’s Auto Insurance is cheaper not because we have less crashes, but because when we do it is generally at lower speeds and causes less expensive damage.
If you are a female driver based in the UK, USA or Canada, we will try to help you find cheap quotes from reputable providers, just follow the ‘related links’ at the bottom of this page: