Some insurance companies or firms offer a type of coverage especially designed for female drivers. Women can avail of this type of coverage and pay lesser premium fees and other expenses. Although this is basically the same as any other car insurance policy, the difference lies on the fact that female drivers are generally known to be involved in less risk than men.

The business of insurance is grounded on risk-taking. If there is a risk, there is insurable interest. If a risk causes loss, an insurer pays up. If a risk does not take place, an insurer gets to keep premiums. Whenever there is a claim made by a client, a company tries to compute how much they are going to lose if they pay the claim. Now, this would depend on risks involved. Insurance companies would often adjust the amount of premiums that will enable them to conveniently make a justified payment without losing profit. Getting to know their clients and finding out who among them poses the highest risk – thus highest expense – is a key strategy in making sure that they will not go bankrupt.

Statistics show that a majority of road accidents have been caused by young and inexperienced drivers, most of them male. This same data shows that women, whether young or otherwise, have been involved in fewer accidents than men. Add this to the fact that there are usually more women than men in the outdoor population. This results in men being required to pay higher premiums. Women are allowed to pay lesser amounts because a company expects to make a profit because there is practically no risk involved. Even if women drivers do get involved in accidents, the amount of claims will almost never surpass the amount of profits.

This is also a reason why insurance companies have been aggressive in selling policies to women drivers. They have to compensate for losses they experienced in paying off claims involving accidents caused by men. It becomes a norm to expect that women are low-risk policy holders. The present trend has evolved to design insurance programs solely for women drivers – one with sufficient coverage albeit a lower rate of premium.

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Currently, the law provides insurance providers the prerogative to give their policyholders a discount for having a continued auto insurance coverage from their company. This is otherwise known as the loyalty discount. However, as the name implies, this discount will not be applicable once the customer decides to switch from one provider to another.

The modification gives rise to the Continuous Coverage Auto Insurance Discount Act, which will guarantee drivers a fixed discount on their automobile insurance, even if they do not decide to maintain under a certain company and transfer their coverage to another insurance provider. The question here are the beneficiaries. Definitely, it will be the consumers. Statistics show that about eighty-two percent of drivers from California have auto insurance that is required by the law. The people here come from a variety of groups like single parents, elderly, working families, and young drivers.

If allowed to offer the same kind of discounts to all policyholders, the insurance companies can make the nature of the auto insurance market more competitive. To keep the flow of new policyholders going, the different insurance providers would have to lower the prices of their premiums. In addition, this will also have to include a better plan and coverage with added improvements in customer service.

In fact, California is lagging behind in terms of this law. Several other states actually allow different insurance companies to offer this kind of discount to those prospective policyholders or those already with the company beforehand. Included in the areas that support this kind of law are New York, Texas, Oregon, Florida, Washington, and several other more.

Insurance companies will also be required to maintain the main basis by which insurance rates are determined. These are the safety record of the driver, annual mileage, and experience. In addition, the older discounts such as the student discounts and good driver discounts will continue to be in effect.

Several organizations are rallying this change. Such organizations like Consumers Coalition of California, California Alliance for Consumer Protection, and California Black Chamber of Commerce to name a few are supporting it. Ultimately, it will result to lower prices for everyone.

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