CAR INSURANCE NEWS ROUNDUP: WEEK ENDED 19 dec 2012:
The sums have been added up, and industry experts say that the average car insurance rate hike women can expect after 21 December is around 24 per cent.
Car insurance comparison sites have been working overtime ahead of the Gender Directive handed down by the EU in order to suss out exactly what the nation’s female motorists are in for when it comes to their motor car insurance. This Gender Directive effectively bans car insurance companies from using gender differences in determining premiums, even though women are statistically less likely to be involved in accidents than men and have earned lowered insurance rates as a result for decades.
This spells bad news for women, especially since the day this new rule goes into effect is 21 December. It’s the worst type of Christmas present female drivers could possibly want, as from this date every time they renew their car insurance policy, they’re going to experience rate hikes of around 24 per cent on average.
This works out to around £299, according to the research, which is quite a bitter pill to swallow for nearly anyone. However, for younger female motorists under the age of 25, this increase will see their average rates go up to a crippling £1,546 a year – a sum which could drive many young women drivers right off the road due to increased costs.
However, if you’re a female driver living in central London, you’re in for even more bad news: the average increase expected for women between the ages of 17 and 25 is in excess of £500. This drives average costs up to an eye watering £2,599, which can be more expensive than the cost of a used car in many cases!
It doesn’t even matter how competitive the insurance market is, warn industry experts, as these new regulations will act as a massive wet blanket thrown across the entire industry. It’s not just car insurers that are being put through the wringer, either – other financial services affected by the new Gender Directive include pensions converted into annual incomes through annuities and life insurance policies as well.