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How does gender affect your motor insurance premium?

We are now living in a world where gender equality is seen as a basic human right. However, it is not so equal when it comes to motor insurance premiums. While men are stereotypically seen as more well-versed in driving, research has shown that it is actually women who are safer drivers, and women pay less for auto insurance in many countries.

So what exactly are the differences in the driving behaviors between the two genders? Are women of different ages charged differently? What comes into play when insurers determine your motor insurance premium? Today, Kwiksure Singapore digs deeper into how gender plays a part in determining motor insurance premiums, and answers the above questions.

Are women charged less than men in Singapore?

Yes. According to figures provided by four leading insurers – NTUC Income, AXA, Liberty and MSIG – car insurance premiums for women drivers in the Lion City are up to 13.6 percent lower than for men of a similar profile, and all four insurers offer lower car premiums to women. This has nothing to do with gender discrimination, but is based on hard data. In the following section, we are going to explain what that hard data is.

How about other countries?

Just a few days before this article was written, the insurance commissioner of California banned insurers from charging different rates for male and female drivers, regardless of their records.

As for Europe, a 2012 European Union ruling has banned gender-specific pricing, but men are still paying significantly more for car insurance than women according to research conducted in the summer of 2017. This is possibly due to factors such as statistically higher accident rates for men, and more men than women driving business and commercial vehicles, which are higher risk vehicles.

What are the differences in the driving behaviors of men and women?

Based on statistics in Singapore, women are less likely to take risks and get involved in a car accident on the roads than men. Additionally, female drivers tend to drive less powerful automobiles with smaller engines, and drive fewer miles than men. Thus, they make fewer motor insurance claims than male drivers.

Are women of different ages charged differently?

Age can play a vital role in differences between insurance rates. On one hand, the assessment that women are more likely to exercise safe driving than men accounts for most of the lifetime difference in insurance costs between men and women. On the other hand, young women are deemed more dangerous drivers, and are more likely to get into accidents than older women.

How do insurers determine your motor insurance rate?

Insurers will look at a slew of risk factors other than gender to determine the risks they will face when insuring you. The greater the risk factor ratings are, the higher your car insurance premium will be. These risk factors include:

  • Your age

Young drivers under 25 and seniors generally need to pay more for their insurance.

  • Your car’s make, model and year

Luxury and sports cars are more costly to insure than sedans and minivans. This is because those car models are costlier to fix. Besides, these high-speed cars are more likely to be involved in riskier driving behaviors.

  • Your safety record

The more traffic violations you have on the record, the more you can expect to pay for your motor insurance. For example, should you have a record of speeding, dangerous driving, or driving under the influence of drugs or alcohol, your insurer will likely raise your rates substantially.

  • Your years of driving experience

Learners and young drivers tend to be charged more, as they lack experience, and are more likely to have accidents.

  • Your claim history

The more claims you have made in the past, the higher your premiums usually are.

  • Your credit history

Your credit history will also be taken into account when the insurer determines your premium. This is because many studies have shown that if you have a low credit score, you are more likely to be involved in a car crash.

  • Occupation

A study has shown that people in some professions, such as professional football players and doormen, are usually charged with a higher premium. This is because they often work night shifts, and so their car will be parked away from their home in the dark, leading to an increased risk of theft.

Reach out to Kwiksure Singapore for more information

Let’s face it: Women are statistically safer drivers than men, and therefore women are usually charged with lower car insurance premiums. However, gender is only one of the factors that affect your insurance rate. If you want to spend less on your car insurance, you can read our previous feature articles on this subject such as “How to save money on car insurance in Singapore” and “How to secure reduced-premium usage-based car insurance”.

With the goal of simplifying insurance, Kwiksure Singapore curates weekly blog posts on different subjects related to motor insurance, so that our readers can make better educated insurance decisions. Our team of experts specializes in matching clients with the best plan to match their specific needs. If you would like to know our prices, feel free to make use of our online quotation tool. Alternatively, you can reach out to our helpful specialists for impartial insurance advice, or to get an obligation-free quote and plan comparison!