If you're female and looking for car insurance, you're in a good position. Car insurance premiums tend to be cheaper for women for several reasons:
- Women drivers are involved in fewer accidents than male drivers and accordingly, make fewer car insurance claims.
- Women have fewer traffic violations and are, in general, more careful drivers.
- Car accidents that women are involved in tend to cause less damage than accidents involving and caused by male drivers.
Considering that car insurers adjust premiums according to risk categories, it's no wonder that women's car insurance is generally cheaper than their male counterparts'. Additionally, if the primary policy holder is a woman in an older demographic, chances are that the premium will be reduced even further, as older drivers are considered safer.
Some car insurance companies in Australia offer specifically tailored women's car insurance policies. Here are some tips to choosing the one that's right for you
Types of car insurance
Firstly, choose the type of car insurance that suits your needs and budget:
- Comprehensive car insurance generally covers damage to your vehicle and property as well as others who are affected by an accident for which you are responsible. This is great for women as it often comes with options for additional cover for things like a hire car while yours is being fixed, and emergency accommodation and transport when required after an accident that occurs far from home.
- Third Party Fire and Theft generally covers damage to other people's vehicles or property when you are at fault, and cover for your car only if it is stolen or damaged by fire.
- Third Party Property generally covers damage to other people's vehicles and property when you are at fault, but does not cover your own vehicle. This very affordable cover is important to exempt you from legal liability for damage that you cause.
These types of insurances are different to Compulsory Third Party (CTP), also known as a greenslip, which is required in NSW and QLD before your vehicle can be registered.
Understand your policy
Make sure you read the relevant Product Disclosure Statement (PDS) and understand the details, like how the excess works, before you purchase your car insurance policy.
Choosing a higher excess can lower your up-front premium, as the excess is the amount you agree to pay if you cause an accident and need to claim. The basic excess will only apply if the accident was your fault, but there are other excesses that may be applied on top of the basic excess, like Age Excess (for younger drivers) and Inexperienced Driver Excess (if the driver was over 25 but hadn't held their Australian licence for at least two years) that you should be aware of.
Keep your car insurance affordable
While women are already at an advantage when it comes to taking out car insurance, there are other ways to help keep your cover affordable:
- Keep a good driving record free of traffic offences,
- Take an approved driving course like Defensive Driving,
- Take an additional excess for male drivers, if this option is available,
- Compare quotes before you choose your policy.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.