Does cover for the girls really leave other deals standing?

Specialist firms claim to give female drivers great value. The premiums suggest otherwise, writes Esther Shaw

Women have long been the butt of jokes about their driving skills, but the tables were turned two and a half years ago when "female focused" car insurer Sheilas' Wheels was launched, promising "bonzer" deals. The firm played on being able to offer lower premiums to women because, statistically, they are safer drivers and make fewer claims, and so represent a lower insurance risk.

Its proposition clearly appealed, as today the firm has almost a quarter of a million policyholders, and now Sheilas' Wheels has moved into home insurance.

"Traditional home cover has been unisex in its blandness," says Asia Manzoor, spokeswoman for the company. "But we are offering features such as ID fraud detection, new-for-old cover on clothes, alternative accommodation if utilities are cut off, and free family legal protection – many of which are not available on other policies."

But while Ms Manzoor claims her company's products are "competitively-priced", not all are convinced. New research into the cost of car insurance by price-comparison service Moneysupermarket.com shows that a 30-year-old female teacher driving a Ford Focus would pay £225.50 for a policy with Sheilas' Wheels, compared to just £141.33 with Swiftcover. Diamond, another women-only car insurer, is even more expensive at £279.80.

"Specialist insurers like Sheilas' Wheels, Ladybird and Diamond promote themselves to women as the value alternative, catering specifically for their needs," says Moneysupermarket spokesman Peter Gerrard. "But female motorists should not be lulled into thinking a specialist will always offer the best deal. While they may sometimes come up trumps, they will usually be beaten on premiums."

He also points out that many of these brands are offshoots of bigger names. "Admiral is behind Diamond and Esure is behind Sheilas' Wheels. They are simply a variation on those insurers' policies."

It's not just in the female market where specialist insurers are carving a niche, with RIAS, intune and Heyday joining Saga in targeting the "silver pound". But Mr Gerrard warns that further Moneysupermarket findings show it is the same story for older drivers.

"A 60-year-old with a Focus, Astra or Megane would pay an average of £88 with Swiftcover and £255 at RIAS. Motorists shouldn't rely on specialists; it pays to scour the market for the best cover to suit your needs."

Saga argues that the cases highlighted in the Moneysupermarket research are "not representative of the Saga offering".

"In many cases, Saga is the cheapest insurer on the market, and this is backed up by a high level of customer service and comprehensive benefits," says Steve Ashton, chief operating officer of Saga Services.

However, there is widespread agreement among insurance experts that consumers should not be lured in by catchy slogans or advertising hype.

"Many of these specialist companies have come up with excellent marketing vehicles trading on age or sex," says Eric Galbraith from the British Insurance Brokers' Association (Biba). "But the fact is that there are other insurers out there which can provide you with a better deal.

"We often find that older people, for example, think they have no choice but to go to a specialist because of their age. But there is a market out there for all types of cover, and a broker will help to search the whole market for you."

Michael Powell from financial analyst Defaqto points out that, in many cases, the cover provided by the specialists is no different to that offered by the mainstream market.

"As most policies would provide the same, or even better cover in some circumstances, I believe these types of insurers are really a branding exercise," he says. "However, Sheilas' Wheels and Diamond do provide something unique with the "handbag cover", which offers up to £300 for handbags that are stolen from a car – in addition to the amount of cover that is provided for 'personal belongings'."

He adds that those insurers that specialise in the older market also have their benefits.

"These companies come into their own when the policyholder reaches the age of 75, as neither Age Concern nor Heyday stipulate a maximum acceptance age, while Saga accepts policyholders up to 100."