Out in the United Kingdom, women’s insurance premiums could soar as high as 24-percent more than what they’re currently paying thanks to the EU’s Gender Directive that will be put into effect December 21st.
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Have you ever wondered why women get cheaper auto insurance than men? Is it because of their safer driving habits? According to a new study out of England, it might be because they are lying when they apply for car insurance.
New research from eInsurance Group reported that 20 percent of its insurance policies sold in May resulted in fraud investigations, with 51 percent of declined applications coming from women and 49 percent from men. So what were drivers lying about? The top three fibs to make the list are: not disclosing convictions (total 47 percent – 64 percent male, 36 percent female); misleading information about how long they’ve held a license (total 32 percent – 32 percent male, 68 percent female); and lying about possessing a no-claims discount (total 19 percent – 47 percent male, 53 percent female).
“These results show that basing insurance premiums on gender alone is misguided,” said Alan Sanderson, CEO of eInsurance Group. “The insurers should do more to tackle the liars, whoever they are, and reward honest drivers.”
What do you think about this report? Do you think the policy of charging men more than women for auto insurance is fair or is this study just a fluke? Leave us your thoughts in the comments section below.
If you’ve ever wondered how much you’ll pay for auto insurance over a lifetime, we’ve got a number for you, and if you don’t want to get depressed, you may want to avert your eyes.
According to Insurance.com, the average American can expect to pay $84,388 for car insurance over a lifetime. For the purposes of this study, that would be a driver who first purchased insurance at age 21, married at 27, briefly insured two teens and stopped driving at age 75. Over this lifespan, it also includes various claims, including accidents and other incidents.
Just for reference, here’s some other costs per lifetime you can expect to shell out:
Athletic shoes at one pair annually (ages 16-75): $2,737.01 for males, $2,597.18 for females
Pet insurance for one dog (12 years): $4,766
Trip to Disney World for a family of four: $5,026
Four years of college: $30,420
NYC monthly subway pass (ages 16 to 75): $63,012
New car every seven years (ages 22 to75): $150,065.71
If you’re looking to lower your lifetime insurance costs, there are a few easy steps to take. And according to Sandra Spann, a spokeswoman for American Family Insurance, to key to driving down your lifetime insurance costs is to “Obey the traffic laws and stay ticket-free.”
How’s this for a little added incentive? In the hopes of attracting more consumers, OnStar is teaming up with auto insurance companies to offer subscribers discounts on their car policies.
Going in their favor is the fact that OnStar’s subscribers are safer drivers and more conscientious on the road. Also in the pro column is that its service helps insurance companies lower loss and reduce insurance claims, as GM vehicles that come with OnStar have a higher chance of recovery. And in case of an accident, OnStar’s operators are automatically alerted and help first responders pinpoint the exact location of the vehicle.
So how does faster response time benefit insurance companies? The faster medical response could equal lower hospital bills, and in a perfect world, the insurance companies will pass those savings on to their customers. GM has already had a few discussions with Liberty Mutual and Century 21, and GMAC Insurance already offers OnStar subscribers a discount based on actual mileage driven. With this program, a kind of “pay as you go” system, OnStar sends GMAC Insurance the subscriber’s vehicle diagnostic report along with the odometer reading twice a year. The insurance company would prorate the premium based on the miles you’ve driven, with discounts starting at 15,000 miles.
When you think about it, the savings from this type of plan would cover OnStar’s subscription cost – it’s $199 per year for the “safety and security” package and $299 for “directions and connections,” along with navigation. And when you buy a new GM vehicle, OnStar is free for the first year, and about 50 percent of these purchasers continue the subscription after the trial period expires.
Count your blessings (and the extra cash in your wallet) if you’re planning on buying car insurance in the very near future. Start shopping around, because in the next few weeks, insurance rates are going to be the lowest they’ve been in more than two years.
Let’s look at the numbers. In April, the lowest average annual rate for car insurance dropped from $1,812 to $1,798 in May. Back in May of 2009, the average rate was $1,871.
“This is great news for the growing number of savvy drivers shopping and comparing car insurance quotes,” says Rob Klapper, CEO, insurance.com. “They know there is always a chance to save big because rates constantly change for various reasons – from events in the driver’s personal life, like buying a home or having a birthday, to fluctuations in the insurance market.”
But drivers should remember to look at the other side of the coin as well. According to Klapper, a disconcerting fact is the type of coverage being chosen is a factor that’s driving rates lower.
“We’re seeing more and more drivers choosing minimum coverage or liability-only coverage when they shop and compare quotes,” says Klapper. “It makes sense, since many people are on tight budgets in this down economy and car insurance is one of the easiest places to save money. But, inevitably, this trend only adds to a growing group of underinsured drivers on the road.”
Drivers don’t always look at the big picture – they often see the lower dollar amounts and base their decision on that factor alone. You should always think to what could happen if you were to ever get into a serious accident, which can result in medical expenses that exceed an underinsured driver’s policy limits. What’s left on the bill at the end of the day, you’ve got to pony up the difference – and it can get pricey. And let’s not even get started on what could happen if you were found at fault in regards to an accident and your insurance couldn’t back you up. Insurance.com always recommends drivers buy coverage that matches your financial risk.
[Source: Cars For Girls]
Got a couple of speeding tickets under your belt? Then you’re not going to want to settle in Louisiana, which can now boast that it has the highest car insurance rates in the U.S.
These findings are based on a new Insure.com national survey that collected average auto insurance rates for more than 2,400 vehicles, based on 10 ZIP codes per state and rates from six large carriers, and the averages were calculated nationally as well as for each state. The average insurance premium in Louisiana is $2,510.87, followed by Michigan, which comes in at $2,098.87. If you’re looking to save a few bucks, move to Maine where the insurance premium is just $902.85.
So why is it so expensive to drive in Louisiana? According to some insurance experts, it’s because of the state’s court system. Only cases with claims in excess of $50,000 receive a jury trial, so there are a lot of settlements that come in at $49,000. That’s great news for those seeking a claim against an at-fault driver, but bad news for the insurance companies that have to pay the tab. Added to this legal quagmire is the fact that Louisiana has had higher bodily injury rates and more lawsuits per capita than most states.
To keep there rates low, Maine has a few policies in place to keep cash in your pocket. According to Chris Condon, incoming president of the Maine Insurance Agents Association, this is because the average number of annual miles driven is low, as is commuter mileage, and its highways are not that busy.
Top 10 Most Expensive States for Car Insurance
State Average Premium
- Louisiana $2,510.87
- Michigan $2,098.29
- Oklahoma $1,869.39
- Montana $1,857.96
- California $1,774.41
- South Dakota $1,772.83
- Washington, DC $1,753.19
- Georgia $1,751.42
- Illinois $1,679.15
- Connecticut $1,678.90
Top 10 Least Expensive States for Car Insurance
- Maine $902.85
- Vermont $968.58
- Ohio $999.86
- Wisconsin $1,010.93
- New Hampshire $1,011.23
- Iowa $1,039.04
- Massachusetts $1,043.80
- North Carolina $1,130.45
- Arizona $1,152.50
- Tennessee $1,170.12