Posts Tagged ‘car insurance for women’

Should older women pay more for car insurance?

Sunday, January 17th, 2010

The jury is out as always about the comparative driving ability of women and men drivers. This always depends on a lot more factors than just age (such as postcode, experience and claims) but provocative gender headlines are always popular!

Most of us are aware of the statistics about young men drivers causing more than 90% of all fatalities and serious injuries on the road. Hence the lesser risk assessment for car insurance premiums for younger female motorists.

Previous research suggested that men and women between the age of 30 and 60 were similarly competent drivers, judged by their driving record and insurance claims.

After that, older women had more accidents but they were often local bumps that were less serious and less expensive to repair. I had assumed that they were normally paid for by the motorist within their excess and I have always advocated the likes of the Driving Standards Agency’s Arrive Alive training programme (called Classic for older drivers) for organisations like the WI and TWG to include in their local membership events programmes.

But I read in Guardian Money that insurers are now charging women drivers aged 75 some 50% more for their car insurance than men. From the age of 80 this rises to a staggering supplement of 100%. Ouch.

Unsurprisingly, linked to predictable baby boomer birth rates and social trends the number of women drivers over 70 with licences has increased dramatically from 4% in 1976 to the 1990s figure of 20% and it is now at 36%. This will continue to grow as those of us with driving licences age and replace Mums and Grans who perhaps didn’t drive in their day.

The crossover point at which women start paying more than men has, according to AA Insurance, reduced from 60 years to 50 years in just six years. As other car insurance providers are still working on 60 years as the crossover point it makes sound sense for any 51 to 59 year old foxy women drivers to shop around for rates come renewal time, especially those who might be paying more than they need to AA Insurance…

In Guardian Money’s analysis Asda and Sheilas’ Wheels came out best and surprisingly, bearing in mind their retail market profile one of the biggest increases in premiums was made by Marks & Spencer followed by the RAC (53% more), Tesco (37% more) and LV= (28% more).

I know from experience that many older women drivers lack confidence for a multitude of reasons (divorce and widowhood might have forced them onto the roads after many years of willing back seat driving), can be more likely to get distracted than men (we call it multi-tasking and we often have children with us), are more likely to be doing local shopping mileage (so we WILL be the ones to have these local prangs) and may not have had training in motorway driving which requires a different skill set.

But is it just ‘older’ women that should have driving refresher courses? Even celebrities like Gwyneth Paltrow  admit to needing help with their driving concentration skills… And after 10 years, wouldn’t it be a good idea for everyone to have a refresher driving training course to fend off all the bad driving habits we all seem to acquire?

I am all in favour of driving training courses for women drivers of all ages that bring women together locally, are social female friendly occasions rather than what might be perceived as patronising experiences and so that women can learn from their peers rather than superior males…

And perhaps the insurance companies would then reward an independent training scheme with lower premiums for women drivers, where applicable, just as they do with the PassPlus training scheme for novice drivers. After all their risk should be lower with fewer road accidents and motoring claims.

We might even include FOXY’s life assistance membership services including free car fitness checks and FOXY Choice’s female friendly approved garages so she can count on friendly motoring support and good local garages to help her run safer cars and who are measurably better than others.

FOXY Steph

Women drivers charged for accident car hire

Monday, November 9th, 2009

I know it’s a minefield and I am not an insurance expert but I have just been talking to a women driver who wanted to know her entitlement to a hire car; she was very distressed with the progress of her car insurance accident claim. Very often we find that the policy stated entitlement to a hire car is too short a period whilst a car is either repaired or the woman needs to buy a replacement – clearly this is a way to cut back on operating costs and reduce premiums/increase profits?

In this instance I was talking about an apparent ‘no fault’ situation ie where the motorist had been asked to pay for costs which she thought were unfair.

The legal precedent here is Clark v Ardington (2002) where female motorist Mrs Clark was driving her Vauxhall when it was hit from behind by a vehicle from Ardington Electrical Services. The case was to do with who should pay for the vehicle hire for Mrs Clark when the accident car repair took longer than it should have done, according to the insurance policy wording ie its terms and conditions. Should it be the motorist or the insurer (to then reclaim this from the guilty party). There were added complications because she had asked her husband to sort it all out for her and perhaps one thought the other had done something and so on.

On this occasion the Court of Appeal determined that Mrs Clark had done nothing wrong and that she should be put back in the same financial position as she was before the accident damage took place. The actual wording of the judgment was

“the fundamental principle is that a person whose car has been damaged is entitled to compensation for the loss caused. In a case where such loss includes loss of use and he (she) establishes a need for a replacement, he (she) is entitled to the cost of hiring a replacement car. He (she) can go round to the nearest car hire company and is prima facie entitled to recover the amount charged whether or not the charge is at the top of the range of car hire rates. However the basic principle is qualified by the duty to take reasonable steps to mitigate the loss. What is reasonable will depend on the circumstances.”

As I see it, the emphasis as always is on behaviour that is reasonable BUT any innocent female motorist should not be held liable in these circumstances by a motor insurer if delays to the repair of her vehicle take longer than expected for reasons outside her reasonable control.

She should, however, do her best to minimise these costs ie to choose a comparable car to hire, not the top of the range just because it was there.

But the problem is that many insurers will hide behind their policy wording and use junior staff to try to fend off any claims outside the written word no matter their reasonableness. That’s a summary of FOXY’s experience at least…

Whereas car insurance providers for women who go that extra mile can actively demonstrate providing more than the policy states – that surely adds to customer loyalty and is by far the wiser business strategy in the long term…

If you are shopping for female friendly car insurance soon, you can find out more about female feedback about car insurance for women here.

FOXY Steph

Car insurance information for women drivers

Wednesday, April 29th, 2009

Stats from the ABI (Association of British Insurers) show that 107,000 fraudulent insurance claims were detected and exposed in 2008 and that their value, £730m, was up by 30% over 2007

£360m of this referred to fraudulent motor claims, about 4% of total car insurance claims.

In a separate survey of 3,000 adults carried out by YouGov, one in five people, including women drivers, admitted that they would not rule out making a fraudulent claim in future. That seems extremely high to me although I haven’t seen the question asked.

Nick Starling, the ABI’s director of general insurance and health added the following car insurance information for women drivers stating that

“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats.  Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”

Examples of bogus motor claims affecting car insurance premiums for women drivers who may well be members of FOXY Lady Drivers Club include

1     A policyholder claimed that his car had been stolen from a car park. His car was found at the bottom of the cliff, with no signs of forced entry however his local newspaper had carried a photo of the wrecked car two days before the alleged theft. Finally he admitted that he had pushed the car over the cliff, and planned to use the insurance payout to pay off his debts.

2     A woman reported her husband for exaggerating his injuries following a car accident, and after he received a compensation payout of £385,000.

As always it’s the good eggs that pay for the bad ones.  I’d have no hesitation in shopping someone I knew was cheating the rest of us.

How about you?

FOXY Steph

PS: If you know of an insurance claim that is dishonest, please do the rest of us a favour by reporting it to the Insurance Fraud Bureau’s Cheat Line on 0800 328 2550.

Will Aviva do better than Norwich Union?

Friday, April 17th, 2009

I just typed ‘how much did the Aviva rebrand cost’ into Google to find that others have been there before me…

The answer is an estimated £12.5 million I am told (sounds too cheap to me…) – that and the cost of laying off some 10k workers which will be blamed on the recession of course.

What a shame that we can’t keep and be proud of a UK brand like Norwich Union rather than feel the need to develop a global brand like so many faceless others.

Perhaps we are getting to a stage where the likes of women drivers are buying the car insurance brand of the many search comparison websites – I do hope not.

Let’s hope Aviva won’t become another ‘gone tomorrow’ brand like Consignia or Arthur Andersen – where a company with a recognised identity and perceived values chucks it all away to get a ‘me-too’ name that doesn’t do the business.

Especially if Aviva then gets muddled with a bus company named Arriva…

Shame really because the name Aviva has an upbeat message! I bet this cost their agency loads to come up with, to include all the strategic values and similar marketing rebranding messages.

I wonder if the £12.5m MarComms campaign will be paid by by future policy holders or out of shareholder dividends?

I wonder if the shareholders were consulted about this – of course not! The reality is that the amount is far too small to worry about on a global stage and the business can presumably demonstrate other economies of scale post recession.

And let’s face it, if the policy price is right, including car insurance for women drivers, we’ll still buy it even if we get the name wrong on occasion.

FOXY Steph

PS: Prior to introducing Aviva, Product Recall Research had shown that when asked to name an insurer, 50% of people asked said Norwich Union, and no one said Aviva. After being prompted, 10% said they recognised the name Aviva, whilst 90% had heard of Norwich Union.

Undaunted, the Company introduced TV ads featuring Bruce Willis, Elle McPherson and Ringo Starr.  Presumably the 10% is rising slowly. More money needed I feel sure…