Are women paying unfair rates?

Insurance quotes should give lower rates to women

Women wonder if the insurance quote they receive is fair. There has always been a feeling that some pay more for auto insurance than they should. The good driver who has never had a speeding ticket and never been in an accident thinks they should get a better deal.

Women often feel that they pay more then they should for auto insurance. This has been addressed somewhat in Alberta where gender does not affect rates for new drivers. The GRID system in Alberta looks at drivers by the number of years they have been licensed. If a person has had an accident, then they are rated on the GRID. Then the number of tickets or convictions is considered. When you get an insurance quote for Public Liability and Property Damage (PLPD) it will be the same for all companies when the GRID system is used.

This appears to level young men and women's rates. But this is not so! The insurance companies actuaries have proven that young men have more serious accidents then young women. The number of fatalities is higher and so are the severity of injuries.

How are rates determined?

Insurance is based on the perception of risk. So most of the insurance companies still offer lower rates for younger female drivers than the GRID rates.

The insurance answer

Insurance seems to always be a "hot topic" and we will likely hear more comments and speculation. Generally people are looking for ways to save money and nervous about what might happen in the future. Consider carefully the information you see in the newspaper or hear on the TV news.

Double check some of the "broad" statements that are made in regards to insurance. Ask your agent or broker about what information they have been given in regards to rate changes. Broad or general statements usually are too wide a comment to be highly accurate. If you want a variety of insurance quotes then check with a broker, an agent and online. Confirm that all the information has been recorded accurately or when the policy is underwritten you could find an increase in rates.

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