Driving a female bargain - is women only car insurance really a great deal?

Women only insurer Sheilas' Wheels is two years old this month and has celebrated by releasing the Sheilas' debut single (I'm So) Happy Happy (You're Mine). But do female-only insurers necessarily offer the best deal for lady drivers?

Sheilas' Wheels has certainly brought specialised car insurers to the public's attention. The brand is currently taking on new customers at a rate of over 11,000 a month and has built up close to a quarter of a million customers since launch - a growth rate that outstrips the majority of modern insurance brands that market to both sexes.

Automobile breakdown and car recovery cover, roadside assistance and repair service.

It claims to offer women drivers cheaper car insurance and product enhancements including £300 handbag cover, competitive breakdown recovery rates, a dedicated counselling line run by trained professionals to help customers cope with driving issues such as road rage, and a network of female-friendly repairers.

Sheila's aren't the only wheels!

Other insurance brands specifically aimed at women include Diamond and DivaCar while Girl Motor is a broker specialising in women's insurance. However a quick check of policy prices on the internet reveals that these specialised insurers are regularly beaten by mainstream firms!

For example insuring a Citroen C5 driven by a 35-year-old married woman would cost £225 with Sheilas' Wheels but only £198 with internet-insurer Swiftcover. The same policy would cost £261 with Diamond or £291 with DivaCar yet only £212 with mainstream insurer More Than.

Motor insurance up for renewal? Check out the latest rates now!

Experts say that women looking to take out car insurance should focus on product details and pricing first rather than the insurer's customer base. Remember that a large number of insurers will offer cheaper policies if you voluntarily accept a higher level of excess in the event of a claim. The excess is the amount you will have to pay in the event of a claim, before the insurance kicks in and pays the rest.

Shop online for real car insurance savings

Buying online can also result in big savings which can range from 10% to 20% in some cases. Other factors that can lower your quote include having a good driving history, being over 25 years-old, parking off road, being married and driving a low amount of miles each year. Some insurers offer cheap - or included - breakdown cover too.

However, although firms such as Swiftcover offer consistently cheap insurance for most drivers, it is a good idea to check the terms and conditions of the policy before you sign up.

For example, the excess paid by drivers under the age of 21 with Swiftcover is £400, which is £100 more than the market average. Swiftcover customers are also only entitled to a complementary car for 14 days rather than for the duration of the period your car is being repaired which comes as standard on the majority of policies.

Statistically women are safer drivers than men and so benefit from cheaper motor insurance wherever they buy their policy. According to Sainsbury's Bank car insurance premium index, the average premium for men is £518.46 as opposed to £442.28 for women.

Beware the 'hidden' costs of car insurance

Other things to look out for include whether insurers will charge you extra for paying your premium monthly rather than annually. Many insurers charge an APR for the convenience of paying monthly - and rates can be high. Insurers who do not charge for paying by direct debit include Virgin Money, Insure.co.uk, Heyday and Norwich Union on its Just Car policy. Age Concern and Saga do not charge either, although their policies are not available to all drivers.

The key thing is to shop around. Different insurers target different driver profiles with cheap deals so the insurer who offers the best deal for your friends, might not necessarily be the best option for you too. As well as there being a number of insurers that target women, there are also insurers that target other groups of the population. Saga and RIAS, for example, target over 50s while Privilege aims for customers with five years or more no claims bonus.

Some insurers will offer to match your renewal quote in the hope of winning your business while your current insurer may well reduce the quote it offers you in order to keep your custom.

25 October 2007 © Moneyextra.com

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