Tammy Wynette, Women Drivers And Car Insurance Prices

The Tiger.co.uk boffins have been at it again, scouring hundreds of car insurance quotes in order to calculate the July Tiger Watch results. What’s Tiger Watch? That’s the monthly price monitor that we produce to provide Britain’s motorists with an early warning system when it comes to what’s happening to motor insurance premiums. On the surface the numbers look encouraging for drivers. Compared to prices in June we’ve seen a drop of 0.6% - doesn’t sound like much but when this is stretched over a year, it equates to more than 7%. Prices were also down (by 1.8%) when compared to the Tiger Watch results from July 2011. As an overview, the market seems to have stabilised over the last 12 months when compared to the massive price increases we saw in 2010 and the first half of 2011. But these apparent drops in pricing don’t apply equally for all drivers. Car insurance prices for women are actually on the increase. We’ve been monitoring the differential in male and female pricing particularly closely over the last few months and increasing prices for women have been a trend: Since March 2012 we’ve seen car insurance prices for women increase by just under 6% - that’s the equivalent of a 17% annual increase! Over the same period we’ve seen male prices actually drop by 1.6%. Historically, women have paid less for motor insurance than men. This isn’t because they have fewer accidents (sorry ladies!), but rather because they cause less damage when they do have one. However in the last few months the “gender gap” has been narrowing, with male policy prices now just about 5% more expensive – in March we estimated that they were over 12% more. What’s going on? Well in December 2012 we’ll see the application of the grandly titled EU Gender Directive. This prohibits insurers (not just motor insurers but others including life insurers) from using gender as a specific rating factor. It’s being applied because European law doesn’t allow companies to discriminate by gender when offering goods or services for sale and this is now being extended to cover insurance. So a hundred years of driving history and a mountain of evidence is being cast aside in order to satisfy the EU bureaucrats, resulting in increases – possibly by around 15% - in the premiums that women will pay for their car insurance. We think this is, frankly, mad. Men under the age of 22 are TEN TIMES more likely than women of the same age to have a serious crash; the same age group of males are TWICE as likely as their female counterparts to make an insurance claim; and they are TWENTY FIVE times more likely to commit a driving offence. Tammy was right: “Sometimes it’s hard to be a woman...Doin’ things that you don’t understand”! Whatever your gender, please drive safely this summer.
13/07/2012 09:00:44 Eren

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