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How will women’s car insurance be affected by new insurance laws?

10 Dec 2012 at 13:40

On 21st December 2012 a European Court of Justice directive forbidding gender discrimination through insurance premium prices will be passed. Effectively, this means the end of the road for cheap car insurance for females.

According to Moneysupermarket.com, male drivers currently pay on average £111 more than female drivers. The latest European decree will put a stop to this.

If you’re a female driver worried about car insurance prices going up, here’s how your cover costs will be affected.

Will female car insurance become more expensive?

Unfortunately, yes it will. This is the point of the new legislation, to balance prices between men and women. There are many ways this can be done, however…

How much more expensive is it likely to get?

Premiums for women will likely rise to meet those of men. So, according to Moneysupermarket.com’s figures, female motorists could pay up to £111 more for 12 months’ fully comprehensive cover.

Insurance expert for Moneysupermarket.com, Kevin Pratt, confirms that, “the most likely outcome is that the average cost of a female motorist’s insurance policy will increase, bringing it into line with costs for men.

“Currently, the difference in premium prices between men and women is around 20%, but insurance companies are remaining tight-lipped as to the actual percentage increase they’ll impose.”

Is it worth me taking out a new insurance policy now?

If you’re a female motorist looking to save on your car insurance, we wouldn’t recommend taking out a new policy now. You’ll likely incur expensive cancelation fees on your current contract, offsetting or wiping out any gains you might get from taking out a policy ahead of the 21st December 2012.

There is one proviso, however. If your insurance is up for renewal, make sure you put pen to paper before the new ruling comes into force. You could save yourself a useful sum.

I’m with a women-focused insurance company – what will happen to my policy price?

Women-centric insurance companies will have to increase their prices too. But, you could still exploit an emerging technology in the insurance industry to make a saving.

Statistically, women are 20% safer drivers than men. According to Director of Wunelli (telematics data collection experts to the insurance industry) Paul Stacy, women can still get cheap car insurance by using telematics boxes:

“Using telematics data [a black box mounted in your car that monitors how you drive] should allow companies to offer cheap rates to the best drivers, regardless of gender. As women are generally safer than men, they can be rewarded for good driving.” A black box doesn’t know your gender.

How can women get a good deal on car insurance?

As the days of super-cheap car insurance for women come to an end, there are a number of tactics any driver can follow to keep their premium down.

Good security systems – such as an alarm, immobiliser and vehicle tracker – as well as a telematics ‘black box’ can help to keep cover costs down. These systems monitor how you drive, recording acceleration, braking, speed, steering and general behaviour behind the wheel. If you’re good, your insurance company will reward you with money off.

Staying off the road at peak times or late at night (when people are more likely to have had a drink), as well as avoiding accident black spots can all help to save you money, too.