Young Women Feel The Pinch

We’ve just published the August 2012 Tiger Watch results. This is our very own motor insurance price monitor that looks at hundreds of quotes each month to generate the UK’s most up to date motor insurance price watch. The August results have thrown up a first. For the first time we’ve recorded average male policy prices as being lower than female policy prices. Not much lower admittedly. Just under 2% lower in fact. But traditionally we’ve always seen women paying less than men for their car insurance. And this has been driven primarily by young women paying substantially less for their motor insurance than their young male counterparts. The August data we produced showed that overall, over the past year, policy prices have dropped by about 3.4%. However for younger female drivers we saw prices increase by a chunky 9.2 year-on-year. This has followed a sustained six months of pricing changes that has seen the traditional “gender gap” first close and then, this month, swing the other way. This is shown nicely in the following chart that our Tiger boffins produced for me: So what’s going on? Well we’ve said it before and no doubt we’ll say it again. It’s the result of the forthcoming application of the EU Gender Directive. The bureaucrats in Brussels have decided in their infinite wisdom that, from December 21st 2012, gender cannot be used as an insurance rating factor. This will affect all kinds of insurance, not just motor insurance. But what we’re seeing in the motor insurance market is that insurance companies are starting to bring male and female pricing into greater alignment, resulting in relative increases for female drivers, especially younger female drivers. Our view? It’s not fair! Younger women drivers have statistically proved themselves over the years to be lower insurance risks than their young male counterparts. Isn’t it quite legitimate that this historical data is used as one of the factors used to set insurance rates? But regardless of our view, it’s happening! So if you’re a young female driver facing a hike in your renewal premium or buying young drivers car insurance for the first time, make sure you shop around using a great motor insurance comparison site like to get a gold medal deal!
10/08/2012 09:22:30 Eren

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