Car insurance prices for women could rise by 24%

female insurance prices soar
18 Dec, 2012 2:34pm Claire Holden

New rules could see women's insurance premiums soar from 21 December

Women drivers could see their insurance premiums soar by as much as 24 per cent from 21 December, according to comparison site Confused.com.

The EU’s Gender Directive will come into force on this day and means that insurance companies will no longer be able to vary premiums according to the policyholder's gender.

Confused.com believes that this will cause premiums for women to rise by an average of £299, while women under 25 will fork out on average £1,546 – up from £1,247 in November this year.

Females in central London aged between 17 and 25 are likely to be hit the hardest, with the average premium set to cost £2,599 - a rise of more than £500.

Head of car insurance at Confused.com, Gareth Kloet, said that while the insurance market is currently very competitive, this could change when the new regulations kick in. “The EU gender directive, which takes effect on 21 December, looks likely to spoil things, bringing uncertainty into the market once again and is likely to result in different insurance companies adopting different strategies to gain and retain the best business.”

Other areas of insurance affected by the EU Gender Directive include life insurance and annuities used to convert pensions into an annual income.

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Why favour one over the other?
Why were they lower in the first place? I have never been able to understand. I have seen very few women drivers who drive well. I am not being sexist.
In my view the greatest peril facing motorists today is white white drivers, uninsured drivers, cabbies, old overcautious drivers, very young drivers and the majority of female drivers. In this order.
So in my opinion their insurance shouldn't have been lower than men's. That was sexist.

I'm sure the insurance companies directors and shareholders hearts are breaking having to charge such a large percentage of their customer base even more, seeing a they would have been brought to account by regulatory bodies for charging anywhere near the price rise they are charging now. One would wonder who brought this court case in the first place?

All this extra money from women will mean insurance companies will be able to charge men less won't it? Don't hold your breath…

Premiums are not based upon some notion of driving "well", but upon the likelyhood of having an accident. Or at least they were until the meddling EU stuck its oar in.

Personally, despite being a man, I disagree with this new directive. It was never sexist, it was based on statistics, in exactly the same way that younger drivers are charged more because statistically they're more likely to have an accident (And this isn't considered ageist).

Also, shouldn't the average premium remain the same. i.e. if womens premiums are increasing then mens should be going down. If not then the insurance companies are just pocketing the increase!

Who'll bell the cat?
You do make a valid point in the second half of your comment. As a male motorist I must agree with your view that instead of increasing women's premiums insurance companies should reduce men's premiums. Nice one.
In fact why don't we ask the insurance companies to refund to us the extra premiums they've been charging us over the last God knows home many years that they've been charging the women less.

Isn't this is just a massive windfall for all the insurance companies? Sure they'll have to do some rebranding when it comes to women only insurers, but Gareth Kloet does a very good job of trying to keep a massive grin from spreading over his face when giving that quote.

I don't for a minute think this will lead to lower premiums for men - just richer insurance companies and that's the biggest crime - I do believe women have had a good deal on insurance which does not reflect the real number of true accidents that get fixed by daddy because little princess was driving, smoking, texting and applying mascara all at the same time - things that never go through insurance. When you have driven for a number of years your premium should be based on YOUR history, not the history of someone who happens to also own a pair of testicles. So why does my insurance go up every year despite never having had an accident? Am I more of a risk simply because some other male somewhere else cannot drive? no - of course not, and that's why to a large extent I welcome this removal of blatant sexism and inequality

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