posted 4 years ago

Insurance Premium Increase looms for ‘female drivers’

The EU’s Gender Directive ruling comes in to force from December 21st this year, meaning insurance providers will no longer be exempt from a wider EU principle covering gender equality

The EU’s Gender Directive ruling comes in to force from December 21st this year, meaning insurance providers will no longer be exempt from a wider EU principle covering gender equality. Insurers will no longer be allowed to take gender into account when calculating car insurance premiums but until then, insurers can continue to use gender as a rating factor, charging men and women different prices.

Many female learner drivers are racing to pass their tests before the deadline so their insurance will be quoted at a lower rate for the next year, but over three quarters of female drivers have no idea that their car insurance premiums are about to increase and as a result they could end up paying hundreds of pounds more for cover. It is possible to save on premiums by opting to get a quote now which is “guaranteed” for 90 days. For example Direct Line, has said that provided the customer “commits” to buying the policy it will honour the quote even if the policy starts after December 21. However, it is wise to do your homework before locking into a new policy as other insurers have questioned whether a quote which has been calculated using the driver’s gender will be valid after the changes take place in December. Insurance company Sheila’s Wheels has announced that they will be gradually reducing its 30-day “guaranteed quote” period, so price quoted before December 18 when it moves to gender neutral pricing will no longer be valid after December 21.

According to the AA, the typical cost of car insurance for women aged 17-22 is £2,125 (compared with more than £3,000 for men in this age bracket), while women aged 23-29 pay around £1,200 (compared with £1,840 for men). This difference narrows as motorists reach their thirties and by the time they are in their forties both men and women pay around £700 a year for this annual cover.

Contracts already in force before then will not be affected, so it makes sense for people who want insurance or to top up existing policies to consider doing so without delay.

Get an Insurance Quote

 

Phil Smith, That is where "YOU" are wrong. If someone is after money (i.e, insurance companies) they will do what ever it takes to fool you out of the obvious. Those so called "statistics" you just pointed to have ZERO relation to the real world. Those statistics ARE NOT based on the RATIO of drivers! If there are 100 female drives, and 250 male drivers, and if 10 female drivers have accidents and 25 male drivers have accidents, then the RATIO is IDENTICAL! In more simpler terms for your miniature brain cells to understand, if there where an identical amount of female drivers as male drivers on the road then the accident rate would be 100% identical and those statistics of yours would go right out of the window and a whole new pair would walk right in! Get over yourself.

Get us put of the EU gravy train as soon as possible.

reg and Brian sorry but you're wrong . Blanket age, or gender discrimination is unworkable. Scrapping the retirement age is a prime example. Seen any good 90 year old bricklayers?. Young women drivers are statistally a better risk than lads. Its a fact. Any actuary will tell you that, the exceptions will be caught out when the lose their NCD. Insurance has always been based on risk. If you have a thached cottage your fire premium is more. Its as simple as that. Politicians should stop meddling in areas they don't understand. Basically that means every aspect of commercial life. The EU is a complete waste of time and our money.

Instead of increasing womens to bring them inline they could always reduce ours

The sooner we get out of the undemocratic EU the better. So much for the 'Gender Directive' of Dec. 21st.Insurance premiums ought to be based upon risk assessment and if those groups with a lower claims risk are due lower premiums, that is the fair way to calculate them. Why does the EU have to get in the way of sound commercial decision-making?

Phil Smith - Big difference you can't change your sex (well you can with a lot of painful surgery)and more than you can change your race (unless you were Michael Jackson), but you can get older and get better annuity rates. The change is very fair and sensible. I have known some young women drivers that boy racers would not dare to be in the same car with!

Jehu Godsman - your comment makes no sense, if what you say is true that there is no difference in risk between men and women then the EU is simply supporting your view! You should be thanking them (the EU)!

Women keep calling for more equality with men so that has to include car insurance for women! There is absolutely no reason why their premiums are less that those for male drivers of the same age.

We need to get out of the EU as a matter of urgency. Theres no diference between a man and a woman regarding driving risk, in regards to marriage. These jokers are doing a sterling job in messing up our great country and the minds of the young.

More EU lunacy. When will we learn and leave. Whats the point of being an actuary. Are they going to make insurance companies give 60 year olds the same annuity rates as 70 year olds.(age discrimination) Politicians are pathetic.These calculations are based on risk. Shut down Brussels. Who would notice or care?