EU Bureaucracy, Women and Car Insurance Prices

There was some research released this week that suggested that the implementation of the EU Gender Directive in just 5 weeks’ time could result in 1 in 10 women being unable to afford to drive! The Directive from Brussels essentially makes it illegal for insurers to use gender as the basis for the pricing of various insurance products, including motor insurance. Because, historically, women have paid less for their motor insurance than men (because of higher costs of claims for men rather than fewer accidents), this means that female motorists are likely to be looking at increased motor insurance premiums. Some industry pundits are warning of increases up to 25%! It is this level of increase that may lead to some women being no longer able to afford to insure their cars. Here at our own Tiger Watch research indicates that the forthcoming change in pricing by gender has already had an effect: Nine months ago we were seeing, on average, a 12% differential between prices for men and women. This month we’ve seen that reduce to just over 2%. Put another way, motor insurance prices for men have dropped by 8% over the same period; for women, prices have actually increased by 1%. Our view? It’s EU madness in action. Years and years of actuarial evidence clearly suggests that women present less of a risk to insurers than men when it comes to driving. To jettison this is to deny this reality. So we’ve seen car insurance for women increasing over the last few months. And there is no doubt that they will increase more after the December 21st Gender Directive implementation date. Prices for men may well drop a little too. What can be done to help keep motor insurance as affordable as possible for women? We have a couple of thoughts. Firstly, (and we would say this wouldn’t we?) we would encourage all women to shop around at car insurance renewal time and not just to accept the renewal quote from their existing insurer. Use to get car insurance quotes from over 90 brands. Secondly, consider telematics or “black box” motor insurance. These products encourage and reward safer driving and so could well present an attractive alternative for women. They track actual driving performance and use mileage, speed, braking, acceleration and time of driving as factors to calculate premiums. now features 8 such brands – we think this is more than any other car insurance comparison site. Drive safely!
16/11/2012 12:40:56 Eren

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