The Impacts Of Increased Car Insurance Costs For Women Drivers
Female drivers are traditionally considered 'safer' drivers than men. Most insurance companies have offered them lower rates ever since data and statistical analysis were conducted on road traffic accidents.
Studies in the US consistently showed men to be worse drivers, for example noting a 16.4% spike in insurance claims made by men during the hotter summer months. In Britain, a report from the Ministry of Justice showed 82% of all speeding convictions in 2007 were handed to men, with 86% of all careless driving offences also committed by men.
Consequently insurance companies decided that females were better drivers and introduced insurance for women at much lower rates than for their male counter-parts – the women-only policy.
However, strong opposition to this difference in rates has always existed. A recent online poll, by a leading online car supermarket, showed over 90% of people favoured EU proposals to scrap the policy of using gender to decide insurance rates.
Juliane Kokott, Advocate General of the EU Court of Justice, argued that such a policy violated European equality and discrimination rulings. The European Court of Justice itself, after years of debate and strong opposition from the insurance lobby, has now ruled that the women-only policy is discriminatory on the basis that taking such data as mentioned above into account is not in accordance with European principles of gender equality. The female only policy will therefore be banned within two years.
On a practical level this means that insurance rates for women will become higher and those of men will become lower. The difference between premiums at present is almost 13% on average. At present the premium for a woman in her early 20s is £508 a year, compared with £617 for a male of identical circumstance. For younger drivers below the age of 22, the difference is roughly £1000 according to the AA.
The industry protests that this directive will result in more expensive policies for everyone. However in reality this does not seem to be the case. Initial reports state that female drivers under 26 will have their rate increased by up to 25% by December 12th 2012. The more alarmist estimates suggest that this increase would result in costs for female drivers of up to £4300 per annum. For male drivers the news is better, young male drivers could see the cost of their premiums fall by about 10%.
All that can be said with certainty is that the recent ruling has eliminated the traditional gender bias in insurance. This will remove the huge discrepancy in premiums and should make insurance shopping as easy and simple as a windscreen repair in London.
About the Author
Paul Buchanan writes for a digital marketing agency. This article has been commissioned by a client. This article is not designed to promote, but should be considered professional content.
