This is a contentious topic. To understand why, we need to cross over to Europe. As from December 2012, drivers have been facing a major shift in their premium rates. Put simply, almost every female driver has received auto insurance quotes for significantly higher rates while the rates for men have fallen a little. The implementation of the ruling of the European Court across all the member states has produced considerable anger. Yet all this is done to implement a court ruling to impose anti-discrimination rules on the insurance industry. What is happening? The answer is all down to a simple question of interpretation. However you look at the evidence, one thing is absolutely clear. If you put a man and a woman of the same age and experience behind the wheel of the same make and model of vehicle, the woman will pay lower premium auto insurance rates. The European Court said this was evidence of discrimination based on the gender of the drivers. The insurance industry said it was calculating the premium rates based on the assessment each individual would make a claim. Since women drive more safely than men, they tended to earn lower rates than men. However, there was nothing to prevent men from driving more carefully and so equalling the auto insurance rates paid by women. Sadly, the court did not think this convincing and now all insured drivers are being judged without direct reference to their genders.
Here in America, we also have anti-discrimination laws but, so far, there’s no indication anyone is prepared to argue the same case of discrimination before our courts. This is surprising since women generally receive cheap auto insurance and men pay significantly higher rates. To understand how far this goes, let’s quickly look at the process for setting the auto insurance quotes. Other than gender, the other factors taken into account are occupation, many of which are dominated by men, and credit card scores with finances often controlled by men. Partners often live close to where their men have their jobs and men often decide which makes and models of vehicle to drive.
In other words, no matter what set of factors you decide to take into account to set the auto insurance quotes, they are going to reflect the man more than an associated woman. In doing so, the insurance industry is reflecting the way our society works, i.e. it accepts men tend to direct the lives of the women in their lives. The only relevant sphere in which women get to assert some degree of independence is when they get behind the wheel. At that point, they are in charge and, by the way they drive, they earn cheap auto insurance rates. Every statistic from all the major developed economies confirm women are safer drivers than men. In America, that’s rewarded by significantly lower rates. In Europe, women just faced increases in their rates so their safe driving now subsidizes men.