Well, the good news is that car insurance rates are around 6.2 per cent less expensive than they were in June of 2011 – but the bad news is that only men are reaping the benefits of the price cut.
With the 21 December deadline for the EU gender ruling looming ever closer, it looks like car insurance companies are acting early in raising premium pricing for female drivers. A new report from a major car insurance comparison site saw the average premium prices paid by male motorists had decreased by 2.3 per cent over the course of the last month, yet women’s premiums actually increased by 1.2 per cent as insurers increase premiums for younger female motorists.
In essence, the old disparity between the lower prices that women paid in comparison to their male counterparts is rapidly deteriorating. Where men used to be paying 12.4 per cent more on average than women back in March, the difference has shrunk by more than half to 6.1 per cent, evidence that insurers are bracing for the impact of the decision made by the European Court of Justice that declared using gender as a basis for risk assessment as discriminatory – even though statistical analysis has proven over decades that female drivers tend to be more responsible behind the wheel, especially when it comes to younger motorists.
The old way of calculating risk saw young males harshly penalised for the reputation thy earned as risk-taking and irresponsible boy racers, with the average quote for a man between the ages of 17 and 20 was found to be £3,635 for an annual policy while women, who were seen as much safer risks, were only charged around £1,869 for the same level of cover.