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Posts Tagged ‘cheap car insurance for women over 30’

Consider the following scenario that really happened recently on a busy highway in Johannesburg. An elderly gentleman was in the fast lane of the highway with a string of cars behind him. He was driving at around 75km per hour and the younger guy just behind him was getting increasingly frustrated and impatient. When he finally managed to get into the lane just left of the elderly man, he slowed down and with arms waving tried to indicate to the older man that he must move out of the fast lane. The elderly man didn’t even move his head, he just held on to the steering wheel and continued driving in the fast lane. He was clearly concentrating and didn’t even give other drivers a thought.car-insurance-over-60

The actions and reactions of other drivers on the road in this scenario raises a few questions. Are older drivers a bigger danger on the road than younger drivers? Should older drivers be penalised for their age when their car insurance premiums are calculated? Or could we argue that they should pay less for car insurance than younger drivers because they have the benefit of experience behind them?

If we look at the facts around this subject, we know that car insurance companies favour females above males as far as calculating car insurance premiums go because females are known to be better drivers than males as they are more patient and often have children as passengers. It is also a fact that young males – usually those under 25, are known to be high risk drivers because they are prone to speeding, drinking and driving and in general not very attentive on the road. Males and females over 40 are seen as drivers with lower risk as they are more experienced and not as impatient as younger drivers and therefore their car insurance premiums also tend to be lower.

It is, however, also a fact that as people age, factors like impaired vision, mental and/or physical deterioration, slower reaction times and a lack of confidence on high speed roads can severely impede their driving skills. The question is how do car insurance companies determine at what age car insurance premiums should increase, and is it fair to assume that all people  reaching that specific age would automatically qualify as high risk?

If looking at statistics that the National Highway Traffic Safety Administration in the USA released, drivers between 64 and 69 are the safest drivers on the road, no doubt, because they have years of driving experience behind them and also because they have learned the art of being patient. Unfortunately, many people in that age group are already suffering with age related disabilities and car insurance companies could argue that even though that age group was proven to be the lowest risk for them, they should be paying more for car insurance because their physical deterioration turn them into high risk drivers.

This issue could be debated and discussed and pulled apart, argued for and against charging senior citizens more for car insurance and setting an age at which this should happen for whatever reasons are decided. The question, however, remains. Can a specific age be determined at which senior citizens should be charged more for car insurance?

 

Staying with the theme of rights, do women have the right to lower insurance premiums by sole virtue of their gender?

Pity the man who drives with care and caution, because his insurance company will load his premium anyway.

That’s because claim statistics reveal that men, especially young men, are more likely to be involved in an accident, and the repair bill is likely to be higher than that arising from a car accident claim submitted by a woman driver.

As was recently reported, the European Court of Justice has ruled that from December 2012, insurers in the UK can’t practise gender discrimination by charging men higher premiums than women. While that ruling is not binding on South African insurance companies, it has caused major ripples because our industry tends to follow trends in the UK and Europe.

1st for Women is determined to stick to its business model, and the statistics which underpin it.

“1st for Women stands by the fact that, statistically, women are lower insurance risks than their male counterparts,” said managing director Robyn Farrell.

“They take fewer risks, make more careful decisions, usually stick to the speed limit and frown upon road rage.

“The insurance industry as a whole differentiates but does not discriminate.

“Discrimination implies an arbitrary distinction that is not based on merit whilst differentiation is a distinction based on merit.

“The entire insurance industry differentiates in terms of age, gender, geographical location, years of insurance and licence period.”

Not surprisingly, the SA Insurance Association (Saia) has also come out in support of “differentiation in insurance premiums to benefit low-risk consumers”.

Saia’s legal manager, Suzette Strydom, said insurance premiums were based on risk – the higher the risk, the higher the premium.

The constitution outlawed “unfair” discrimination, but discrimination which “reasonably and justifiably differentiates between persons according to objectively determinable criteria, intrinsic to the activity concerned” was defensible, she said.

In other words, there’s solid evidence that women are generally lower risk when it comes to car claims than men.

“In the South African insurance industry, the interpretation has always been that in the event that an insurer can show, with statistics, over a particular period of time, that the claim ratios confirm an increase in and an exposure to risk as a result of age, gender, location or other factors, the premiums will be determined accordingly,” Strydom said.

Age also played a major role in determining car insurance premiums.

“Drivers between the ages of 18 and 25 are three times more likely to cause an accident,” she said. “It is unfair to expect pensioners, for example, to subsidise younger drivers.”

The other factor which influences your car insurance premium is your claim profile – lodge a claim and your premium may well increase afterwards, in keeping with your increased risk status.

So it stands to reason that if you haven’t claimed on your policy for some time, your risk diminishes and your premium should too.

But this doesn’t happen automatically – you have to ask.

In January I got the usual letter from my insurer, telling me that my monthly premium was about go up because of increases in the cost of labour repair rates, vehicle parts and the like.

I was told that my monthly premium, which includes household insurance, was going to increase by a whopping R564 a month.

So I made a call to my insurance company, pointing out a few facts: that while car parts and labour have gone up in most cases, the value of the two cars in question had significantly decreased; that we do relatively low mileage, and that we hadn’t made a car claim for many years.

Within minutes, I was offered a new deal.

Instead of going up by R564 a month, my existing premium went down by R244 a month, so that call saved me more than R800 a month.

Car Insurance Comparisons
If you’re in a similar position, make that call. –

By Wendy Knowler, Pretoria News

Even though men tend to complain about how bad women drivers are, it has been proven that women are much less of a risk in the eyes of the insurance companies in comparison to men.  Therefore women car insurance is usually provided at a lower premium than that of men, and therefore work out cheaper for the client.  These notions are made on the assumptions that women are more reliable, careful and safe when it comes to driving.  Their premiums are still justified by their age, location, usage and type of vehicle that the women own, however the women car insurance is more cost effective.

The fact that women car insurance is treated differently to that of men has been taken in by the insurance companies, and has resulted in the formation in specialised solutions and policies for women car insurance.  These women car insurance options are inclusive of their particular needs and requirements and are obviously available at a lower price than that of general car insurance.

The particular women car insurance options available to the prospective woman client are available on many online insurance sites.  These insurance sites provide the women client with the cheapest and best option of women car insurance that are available on the market according to their resources.  The women car insurance notion has boosted the insurance industry in terms of insurance for women and has enhanced the status of the women car insurance market.  These options can be found on internet sites such as car-insuracne.org and the First For Women car insurance website.

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