Women Still Winning the Battle of the Sexes When it Comes to Car Insurance Premiums

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Oct 08, 2012, 12:05 ET

CHESTER, England, October 8, 2012 /PRNewswire/ --

New gender rules not yet affecting female car insurance premiums
Female car insurance prices fall 11.1 per cent compared to 9.9 per cent for men over the previous year
Men currently pay £111 more on average than women for car insurance

Female drivers are benefitting 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 from 21 December 2012. However, predictions that premiums would rise sharply ahead of the deadline date have yet to materialise. 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 driver standing at £1,919 compared to £1,180 for a female - 63 per cent 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.

"The main question we get asked around the implementation of the ECJ Gender directive is 'What will it mean for drivers, both male and female?' Even with so little time to go before the directive comes into force, insurers are giving nothing away. Premiums for female drivers are particularly competitive at the moment, so anyone whose insurance is coming up for renewal this autumn should make the most of the situation by shopping around now and securing a good deal - starting the process 30 or 40 days before renewal could yield an impressive saving.

"The male/female price gap for younger drivers is vast, but statistically speaking, males are likely to have more accidents and the cost of a claim in male driver accidents is higher. The best advice for all motorists is still to shop around at renewal time and secure the best value policy for your needs. It's rarely the case that a current insurer will offer a better price than would be available elsewhere."

"Female drivers should start the process as soon as they receive their renewal notice this autumn in case insurers have switched to a new pricing approach in advance of December 21, which could leave them exposed to a possible gender price hike.

"The typical saving made by those using MoneySupermarket to take out their car insurance is £411***."

Notes to editors:

* MoneySupermarket Monitor on car insurance:

http://www.moneysupermarket.com/car-insurance/monitor/

Quotes run on the MoneySupermarket website between June 2011 and June 2012.

**In March 2011, the European Court of Justice (ECJ) ruled that insurers couldn't use gender as a factor in the calculation of insurance premiums. Directive 2004/113/EC comes into force from December 21^st 2012.

*** Based on Online independent research by Consumer Intelligence during 01 August 2012 to 31 August 2012

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