why do women pay even less than…

Parity is needed

Since December 21, 2012, insurers no longer have the right to offer different auto insurance rates based on the sex of the insured. With identical guarantees, they are required to apply similar prices to men and women. A judgment of the Court of Justice of the European Union has in fact deemed it discriminatory to take a person’s gender into account to determine the amount of their insurance premium.

Until that date, women paid their car insurance premium less than men. To cancel the pricing gap that then existed between the two sexes, insurers had chosen to increase women’s premiums by 6% and lower men’s premiums by the same amount.

“Over the years, the evolution of insurance rates and the failure to take into account the lesser severity of women’s claims in the statistical calculation of their risk has contributed to increasing the amount of contributions paid by women drivers. And this, even though their male counterparts benefit, for their part, from the lower cost of accidents caused by them”, specifies Olivier Moustacakis, co-founder of Assurland.com. As a result, in ten years, premiums for women have jumped 25% while those for men have only increased by 13%.

The criteria for calculating insurance premiums

The amount of the annual contribution is established by each insurer according to its own fee schedule.. This takes into account the level of protection chosen by the insured (all-risk, third-party insurance, etc.) as well as the risk it represents for the insurance company. The concept of risk is assessed according to the model and brand of vehicle covered. For example, a city car is cheaper to insure than a sedan. Same thing for a Dacia compared to a Porsche or a Tesla. Generally, the newer the carequipped with high-end technologies and likely to attract thieves, the more the amount of the premium flies away. This notion of risk is also assessed according to the profile of the insured driver. Different criteria are taken into account to determine it. Here they are :

His age. The older the driver, the more at risk he is considered by insurers. And this, despite his experience or his good behavior behind the wheel. “Beyond the age of 65, insurers consider that the risks are greater due to a lack of acuity, a decline in visual and hearing abilities, a loss of reflexes but also more significant injuries in case of shock”, details Olivier Moustacakis. After this age, premiums can be up to 17% higher than those paid by 56-65 year olds.

His address. Because of their automobile traffic, their accident rate or their number of stolen cars, certain regions or certain cities are considered riskier than others by insurers. This is particularly the case for the Provence-Alpes-Côte d’Azur region, Ile-de-France and even Corsica.

His driving history. The history of its claims, its responsibility during its accidents as well as its bonus-malus coefficient are listed in a legal document called “information statement”.

The use made of his vehicle. The use of one’s car in both private and professional settings is considered more dangerous by insurers than simple private use.

Contributions that remain lower for women, however

In 2021, the average annual cost of auto insurance is 611 euros*. Despite the increases recorded over the past ten years, there is still a price gap between the amount of premiums paid by women and those paid by men. This difference is around €130 on average.

This can be explained, among other things, by the nature of the vehicles driven by women. “These are driving cars that are often less powerful than their male counterparts. Therefore, considered by insurers to be less risky to guarantee”, underlines Hortense Schlesser, business manager at Adonys. Similarly, they travel fewer kilometers each year than men, again limiting their level of risk. 60% of men drive more than 15,000 km per year compared to 56% of women*.

Finally, they make less professional use of their vehicle and drive shorter distances. According to the National Interministerial Road Safety Observatory (ONISR), their journeys are more oriented towards everyday purchases, school and work than those of men. Thus, 95% of women say they use their vehicle for the reason “shopping” against 84% of men

Ways to further reduce the amount of premiums

Many insurance companies now offer personalized contracts adapted to your driver profile. Example, if you drive little, “small rollers” contracts or “pay as you drive” allow you to adjust the amount of your insurance premium according to the number of kilometers you travel in a year. According to the insurers, either you sign a contract which fixes in advance a mileage not to be exceeded during the year. Or, you agree to use the geolocation technique via an electronic box installed in your vehicle which records your exact mileage and your driving periods. Another possibility if you are very careful behind the wheel: “pay how you drive” contracts offer to reduce the price of your annual membership fee based on your behavior on the road. “To do this, the way you brake, the speed at which you drive or the duration of your journeys are analyzed from a connected device placed in your car”, explains Hortense Schlesser. Compared to “classic” car insurance, these contracts offer discounts that can range from 10 to 40%.

* Source: Assurland

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