The impact of the European Court of Justice’s (ECJ) Gender Directive has made neutral the matter of gender when it comes to determining the premium a person will pay for their car insurance, as well as other forms of cover. However, the change has made men the winners and women the losers, and young female drivers have been left with large increases in their car insurance premiums. Overall, however, this view is only surface deep.
Figures from MoneySupermarket.com show that, since the EU Gender Directive was put into effect not even a month ago, young female motorists between the ages of 17 and 19 have seen their car cover premiums rise 22.1%. This is an average £231 jump. On the other hand, the study of 1.3 million quotes found that young male drivers in the same age group have seen their car cover premiums fall 11.2%. This is an average £184 drop. Although prices have increase for women and dropped for men, male motorists are still paying more for their car insurance. Overall premiums are an average £1,403 through the MoneySupermarket website, which is a 6.8% increase, or average £89.
While there have been changes in car insurance premiums for young men and women, the same can’t be said for motorists in other age ranges. Female drivers in other age groups, for example, haven’t even seen an increase in their premiums since the EU Gender Directive was enforced last month. In fact, some have seen their premiums fall, because the industry overall has seen a 4.9% drop, or average £24, in prices. Since December started, female motorists have seen an overall 1.9% decline in insurance costs, and average premiums are £416. Male drivers overall have seen premiums fall 7.2% to an average £490 over the same period.
MoneySupermarket.com’s insurance expert, Peter Harrison, says that the enforcement of the EU Gender Directive was always a cause for concern, because the impact it would have on car insurance premiums was unknown, especially for female drivers. However, the market in the UK is one of the world’s most sophisticated. Now insurance providers are using other factors to calculate the cost of insurance for their customers. Additionally, it looks like competitiveness is helping keep prices down. It hasn’t even been a month since the ruling was enforced, and overall premiums for drivers have continued falling on average, just like last year. Premiums are now down 7.6% compared to the same time last year.
However, Harrison continued, the new ruling has been impacting young females, while young males are benefiting. It’s important to note, though, that young male motorists are still paying higher car insurance premiums than women and any other age group. It’s important that motorists who have seen a rise in the price of their cover don’t accept the renewal quote from their current provider. Harrison recommends that these drivers shop around and compare prices first. Since premiums vary by the day, motorists should take whatever deal they are satisfied with.