The Labour Party revealed statistics from the Treasury this week, warning that female driver premiums will increase by £362 on average at the end of this year.
The rise in car insurance prices will be caused by the EU Gender Directive when it comes into force at the end of 2012. The Directive means that insurance companies are not allowed to use gender as a rating factor when calculating premiums.
Women do currently pay less than men, and especially the young and recently passed. This is because claims data shows they’re a lower risk than their male counterparts. However, with this data no longer allowed to be used, male and female premiums are likely to meet in the middle.
The idea of “boy racers” impacting young female driver’s premiums will now become a reality. Many are suggesting that black-box insurance products are a potentially savior for young females – their gender can’t be tied to their driving ability, but if their ability can be measured directly, gender loses its importance.
We’d be interested to hear your feedback on the Gender Directive – is it right to lump men and women together when it’s proven that women crash less often? Discuss!