Siyakha Masiye, Legal Disputes/Complaints Manager at MiWay
Car insurance premiums have long been a topic of debate, with one common perception that women pay cheaper rates than men. This belief is often rooted in stereotypes about driving behaviour, such as the assumption that women are safer drivers than men. However, the reality is far more complex, and gender-based pricing in the insurance industry is not as straightforward as it may seem.
According to MiWay’s research on accidents by age and gender, younger women are considered better drivers than men, while older men are considered better drivers than women.
“This means that young women, on average, are in less accidents than men of the same age group. This may result in some female drivers paying less for their insurance premiums than men, but many other factors are involved in determining premiums over time,” says Siyakha Masiye, spokesperson at MiWay.
“While it is true that insurance companies do take factors such as age and gender into account when calculating premiums, it is important to understand that these are just a few of the many variables that influence insurance rates. Other factors, such as driving history (including accidents), vehicle type, location, and coverage options, also play a significant role in determining the cost of car insurance, and these will differ from person to person.”
Ultimately, whether or not premiums are cheaper for women than men, it’s important for insurance to reflect the asset it is covering, which will also be influenced by the age and mileage of a vehicle, whether it is still being paid off, if third-party insurance cover is included and if other value added products (VAPs) such as dent repairs or car hire services, are included.
“The point of insurance of course is to protect against unforeseen events and while not needing to claim, a person’s age and gender could have a positive impact on premiums, the cost of a safety net is always worthwhile when the need to claim arises,” he adds.
“Keep in mind that third-party related claims, for example, are more difficult to manage financially without having the right insurance cover. Repairing your car from any damage, can have some delays meaning alternative transport is another cost if you don’t opt for car hire. These factors are true regardless of gender.”
All assets need proper cover
Ensuring that sufficient car insurance is properly considered is just one facet for women to protect their hard-earned assets. According to Lightstone’s recent property ownership stats, 38% of properties in South Africa are owned by women (33% are co-owned and 29% are owned by men).
This means there are many women that require insurance on their homes as well as their vehicles. Just like car insurance, buildings insurance shelters against unexpected costs if a property becomes damaged, such as if there is a fire or flood.
“While it is true that gender may influence some aspects of short-term insurance cover, owning expensive assets like cars and property is a facet of modern life that requires maintenance. Accidents can unfortunately happen to anyone and often when we least expect them. This reality makes it more essential to ensure that short-term insurance is in place, up to date and sufficient for the risks it covers,” Masiye concludes.
ENDS
