Gender Differences in Attitudes Towards Driving and Demand for Private Insurance: Evidence from Middle Class Drivers

Abstract

This article examines the existence of associations between the gender of the driver, their risk behavior when driving motor vehicles and their inclination to acquire automobile insurance. To conduct this investigation a random survey was carried out with 566 middle class adults in 66 Brazilian towns and cities. By using non-parametric tests and logit models, the results suggest that even when controlling for other variables, women feel a greater need to have automobile insurance to protect themselves in the event of possible accidents under rainy conditions and also 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 driving in more precarious situations: at night, in unfamiliar areas, after drinking, or even when they are tired. These results, in addition to 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.

Keywords: Gender Differences, Risk Taking, Attitude towards Driving, Insurance, Traffic Safety, Behavioral Finance

JEL Classification: G22, L9, D8, J16, O33