Gender differences and automobile insurance acquisition

This chapter examines the associations between driver gender, risk behavior when driving motor vehicles, and the inclination to acquire automobile insurance. To inform this investigation, a random survey was conducted of 566 middle-class adults. By using nonparametric tests and logit models, the results suggest that even when controlling for other variables, women feel a greater need than men to have automobile insurance in the event of possible accidents under rainy conditions and to have access to driver support services. Women also tend to have more respect for speed limits in various situations, such as during the rush hour, on local roads and on highways. The results also showed that men feel safer than women when driving in more precarious situations: at night, in unfamiliar areas, after drinking, or when they are tired. These results, while contributing to the theoretical development of road traffic and transportation safety, are of special relevance to the financial industry and the regulatory agency. The insurance industry may find these results particularly helpful in designing future policies and setting premiums.