Why women get cheaper car insurance than men >>

Men may like to make fun of 'women drivers' but carry out a search for car insurance and it appears that the fairer sex have the last laugh.

On average, women pay significantly less for car insurance than men - so how big is the gap and what are the reasons behind it?

The gulf between men and women

Research from a comparison website in November 2009 shows just how big the gap is between the quotes men receive and the quotes for their female counterparts.

According to its findings, an 18-year-old male will pay an average of £2,318.83 for cover compared to an average of £1,237.33 for a female of the same age. That's a difference of more than 87 per cent and reflects the fact that young male drivers in particular are deemed a high risk group by insurers.

The gap between premiums for men and women generally closes the older they get but remains significant. For example, male drivers in their 40s pick up average premiums of £331.08 compared to an average of £260.99 for females in the same age group - that's still a gap of 26.85 per cent. The gap is lowest when both sexes are in their 70s - at which point there is just a 9.12 per cent difference between average quotes - before climbing again for drivers in their 80s when the gap widens once more to 30.40 per cent on average. As an overall average across all age groups, men typically pay £368.49 more for car insurance than women - a difference of 71.22 per cent.

So what causes this difference?

Car insurance providers base premiums on risk - and clearly men are seen as a higher risk group than women.

Statistics produced by the Home Office in 2006 back up this stance. It found that 97 per cent of motorists convicted of dangerous driving are male. It also showed that 94 per cent of those convicted of causing death by dangerous driving are men.

The difference is at its peak during a motorist's first few years of driving. According to the Centre for Transport Studies at University College London young men do more driving than women and are also more likely to take risks behind the wheel. Research shows that young male drivers aged 17-20 are seven times more at risk than all male drivers and because the insurance industry is sophisticated in how it accumulates data, this is reflected in the significant gap between premiums.

Female friendly car insurance specialists

Due to the fact that women are deemed a lower risk group than men, a number of insurers have emerged that market their products towards women - including the likes of Diva Car Insurance, Ladybird Car Insurance, Diamond Car Insurance and Sheila's Wheels Car Insurance.

These insurers claim that they can offer more competitive quotes for women because, as the bulk of their customers are female, they can make fewer payouts for claims and these savings can then be passed on to the consumer. They also offer policies designed for women with incentives such as:

• Handbag cover - Up to a pre-determined limit in case your handbag and its contents were stolen from your car.
• Female-friendly repairers - Repair centres that are used to addressing the needs of female customers.
• Mobile phone locators - If you are involved in an accident but are unsure of your location, an insurer may use a mobile phone locator service to track your whereabouts.
• Child seat cover - A replacement child seat in the event of an accident.

However, crucially, women should not make the assumption that these female friendly insurers are always the cheapest. A study by a comparison website in January 2009 found that a 30-year-old woman driving a Ford Focus would pay an average of £662 a year with a female-friendly brand. However, with a conventional insurer, the same driver could cut her costs to £388 a year - a saving of nearly 60 per cent.

So how can women get a good deal on car insurance?

The key for female drivers is to take a complete overview of the market. By using a comparison website, they can compare the deals available from more than 100 insurers including many female specialists. Then they can weigh up whether to opt for the cheapest deal or whether it's worth paying extra for additional cover.

There are many other ways to save on car insurance regardless of sex, including:

• Enhancing security: Fitting car alarms, immobilisers and tracking devices that have been recommended by insurers could earn discounts.
• Parking safely: Park in a garage overnight and in a secure car park during the day to reduce premiums.
• Increasing a voluntary excess: Most insurance policies carry a 'compulsory excess', which is an amount you have to pay in the event of a claim. However, most insurers also offer a 'voluntary excess' - an additional amount you agree, at the outset, to pay if a claim is necessary. Setting this at a high level can cut premiums - although it should only be set at a level you can comfortably afford.
• Paying premiums annually: By paying car insurance premiums annually, drivers can avoid interest charges on monthly payments.
• Agreeing to a mileage limit: If you only use your car to run errands and don't travel long distances then you may be able to agree to a mileage limit which will reduce premiums.