Female Drivers in the UK Still Benefit From Lower Car Insurance Premiums

Female drivers are benefiting more from falling car insurance prices than their male counterparts, according to analysis of 21.6 million motor insurance quotes for The MoneySupermarket Monitor on Car Insurance . This is despite widespread predictions of ‘carmageddon’ for women drivers ahead of new European Court of Justice Directive (ECJ) rules in December.

The ECJ ruling prevents insurers from pricing premiums based on gender beginning December 21, 2012. However, predictions that premiums would rise sharply ahead of the deadline date have yet to materialize. Although overall car insurance premiums have fallen by 10.6 per cent in the last 12 months, the gap between the cost of car cover for male and female drivers has not been affected.

On average, car insurance for males costs £111 more than for female drivers, and male drivers continue to pay more for their insurance across all age bands. The research also showed that car insurance deflation has been higher for women at 11.1 per cent compared to 9.9 per cent for men. On average, male motorists currently pay £536 a year for their car insurance, in comparison to average premiums of £425 for women.

MoneySupermarket also uncovered the vast differences in the pricing of premiums for men and women of different age groups. Younger male drivers are hardest hit in the 17-19 age band; the average policy for a male drivers costs 63 percent higher. As age increases, the insurance premium price gap between men and women decreases. For example, for those over 65, men pay on average £249, and women £226, meaning men are paying 10 per cent more for their premium.

Kevin Pratt, insurance expert at MoneySupermarket , said: “Gender has always been a critical differentiator when pricing insurance premiums, with male motorists across the board bearing the brunt of a ‘boy racer’ reputation. The ECJ ruling will mean insurers re-evaluate the way in which they set their prices, but we have yet to see any impact of this ruling on premium prices, with deflation continuing to be the main theme for all drivers.”

Pratt said males are likely to have more accidents and the cost of a claim in male driver accidents is higher according to statistics.

Source: Moneysupermarket.com