Is Insurance Rate for Men Higher than for Women?
Male drivers are frequently charged higher than female drivers are. What makes car insurance rate for men is higher? An article by Kevin Peachey in BBC wrote that men typically pay £101 higher than women do. Men paid annual bill for insurance of £812 in the final quarter of 2016, while women only paid £711, at the same period.
Actually, insurers are not allowed to make discriminative decisions on insurance policies. However, they can consider the risk. The higher the risks are, the more expensive the premium rate is. Since men are considered higher-risk drivers, the insurance companies apply more expensive rate for them. According to a research conducted by Confused.com, the gap of the risks between men and women are widened during last year.
Behind the Higher Insurance Rate for Men
The same research found that men have more risks, as they are more likely to get involved in accidents. They drive more miles; they drive in hurry to work; they are more likely to speed; they are more likely to drive under influence; they are more likely to modify the cars beyond the standard; and many more. These increase the risks for accidents and increase the repair costs.
However, car insurance is still a highly competitive market in the United Kingdom. There are many motorists out there. They shop around to find the cheapest insurance rate for men. This was confirmed by James Dalton from the Association of British Insurers (ABI). Dalton said that car insurance is still a growing market, but there is higher pressure on the insurance.
The government has changed the formula to calculate the car insurance premium. This is a result of many factors, which require government to change the policy. The insurance companies need to pay more for repair bills after the government doubled the Premium Tax. In conclusion: if you are looking for fairer insurance rate for men, make sure to convince the insurance company that you are not a high-risk driver.