Believe it or not, the answer is yes. Segregating women’s car insurance from men’s might seem like a discriminatory practice, but here are several reasons why and how it serves the former group for this distinction to exist:
Reason #1: The statistics don’t lie: in certain age groups, men are significantly worse drivers than women. Yet, the insurance companies care about accident rates and those of men are higher. What most of us would consider to be stereotypes mentioned in any other context (e.g., “men drive faster cars”) turns out to play a major role in how and why men are riskier drivers.
Reason #2: Insurance companies have incentives to sweeten deals for those who are unlikely to get into accidents. From their perspective, those who will never need to make an accident claim are extremely attractive because they are as good as free money in the bank. Women’s car insurance can be priced more cheaply because insurers want to avoid penalizing good drivers for bad driver mistakes, and to draw in as many attractive customers as possible. Similarly, these companies charge more for customers with the highest risk ratings (that is, customers, such as certain men, whose cars, lifestyles, and cultures cause them to ride dangerously).
Reason #3: Differentiating products for men and women provides the opportunity for insurers to tailor offerings and their corresponding marketing messages. Think of the famous tagline for the Secret deodorant brand: “strong enough for a man but made for a woman”. By specifically differentiating a group, a company is making a bold statement directly to the group it has singled out. By creating car insurance products for women, insurers are sending a message that says “we know you are unique and we recognize you; we are tailoring products to you because you matter”.
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