One leading car insurance comparison website has recently raised questions on how much the European Court of Justice Ruling banning gender-based car insurance rate determinations will actually impact the insurance industry.
Car insurance companies can no longer use gender differences as a risk assessment factor when calculating insurance premiums for its customers from 21 December of this year, and many industry experts have said that this will bring an end to discount car insurance for women as a result. Women aged 25 and under are predicted to be the hardest hit, as this class of motorists have been historically charged less than male drivers of the same age for insurance cover.
However, the comparison site disagrees, based on its own research study over the past two years’ worth of insurance price fluctuations. The results of the research found that, for many younger women, it’s already impossible to find affordable insurance as the price gap between young males and young females has closed by a considerable margin.
The survey findings indicate that male drivers no longer pay substantially more than women, as they were only paying approximately 16 per cent more for cover than women during 2010’s first half. However, the second half of 2011 saw this gap falling to under 2 per cent – with much of the drop occurring after the March 2011 ECJ ruling.
These findings are reinforced by additional research conducted by the comparison website that indicate female drivers experienced higher insurance price inflation than their male counterparts. Men only saw a 14 per cent price hike last year, while women in the same age range saw more than 24 per cent in premium price increases.