Price of car insurance rising for women

| June 12, 2012 | 0 Comments
Price of car insurance rising for women

The price of car insurance for women is expected to rise in December, when a new EU directive comes into force, but it seems that some insurance companies are already increasing their charges for female customers.

The latest data from comparison site Tiger.co.uk shows that the average price of a policy for a male driver fell by 2.3 per cent this month, compared with May 2012.

In contrast, the average price of a policy for a female driver increased by 1.2 per cent.

For UK motorists as a whole, average car insurance premiums fell by 0.6 per cent compared with May 2012, and by 6.2 per cent compared with June 2011.

Andrew Goulborn of Tiger.co.uk, said: ‘Monthly inflation is hitting women motorists – especially young women motorists – harder than males.

‘And we’re seeing the biggest falls in premiums amongst the 45 and 55 year old groups that we monitor, with rates dropping around five to six percent month-on-month.’

Women will face even greater price increases when an EU directive banning the use of gender to set prices for financial services comes into force on 21 December 2012.

Traditionally car insurance has been more expensive for men, particularly young men, because they are considered to pose a greater risk of being involved in an accident, a factor which will no longer be taken into account.

The new European rules will not affect existing policies, but will affect the price of policies taken out after 20 December, which means that female drivers may find it is cost effective to renew their policies before this date.

Women could also find that the cost of life insurance increases by as much as 15 per cent as a result of the new European rules.

Women currently pay lower life insurance premiums than men because they have a great life expectancy, but the new rules mean that this will no longer be considered when setting the price of premiums.

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