What Changes Does This Make for Car Insurance Companies?
Car insurance has been an ongoing point of contention because of premium fluctuations between the two genders. Statistics show that women make less expensive car insurance claims than their male counterparts. What many people fail to realise is that the different premiums applied to males and females aren’t based on the way a person makes a claim. It also focuses on how expensive that claim will be. Because of driving habits and work profiles, it is much more likely that women will be involved in minor impact accidents while men will have crashes that result in vehicles being written off.
How Will this Affect Car Insurance Premiums After 2012?
This is a slightly difficult question to answer. Theoretically, auto insurance companies will have to find new premium levels that provide equality for both genders without profits being affected. This inevitably means that auto insurance rates for women will rise, while men will see their car insurance rates fall. How those rates actually change will depend on market competition and consumers response. If car insurance rates for women rise astronomically, many will switch to third party policies and this will affect profits that have previously been made on the sale of comprehensive car insurance policies.
Will Men and Women be Affected Equally?
Yes, but they will not be affected the most. Existing car insurance differentials are much bigger between young drivers and older drivers. While car insurance premiums between the two sexes will come closer together, younger drivers are likely to see a bigger difference in the premiums they pay now, and the car insurance rates that the pay after December 2010.