Cheap car insurance for
women - was it all a myth?
here for quotes)
Much was made of the European Union change of ruling in 2011
which effectively took away cheaper car insurance for women
by removing their lower-risk pricing bias. As a consequence
of the EU Gender Directive, female drivers in the UK were
warned that they would be facing vastly rising insurance
premiums, being equated to males in the risk stakes.
Suddenly equality took a turn for the worse in terms of
matching risk and price in a way that was arguably unfair.
Why did women get cheaper rates previously?
The argument previously of course had been that women were
statistically proven to be a lesser risk for insurance
providers, due to safer driving patterns and a lower
tendency towards accidents. This safer risk profile was
reflected in lower premiums. Evidence showed that men were
statistically responsible for 92pc of all driving related
offences, and 98pc of dangerous driving offences.
Insurers base their premiums on vastly complex calculations
that take into account a range of discrete, interacting
factors and these are kept confidential by the owning firm.
Although men were known to represent a higher risk factor on
the road, it is difficult to say just how much of a premium
this translated to in reality, and how much of a discount
women did receive- especially those who failed to shop
around and check against renewal prices.
The reality was that many women found themselves paying just
as much as the men, especially if they were in a younger age
category, and automatically a higher risk to ensure. After
all, gender is just one factor in assessing risk on the
road. Age, occupation, address and other variables all play
a part, and combine together to make up the full insurance
The situation now
A report in The Telegraph found that insurers were getting
around the EU restriction by exploiting a legal loophole
that allows them to charge differential rates depending on
an individual's occupation. By identifying roles that are
typically favoured by either gender, the insurer can tweak
insurance premiums accordingly. Age is also still taken into
account, as is the amount of no claims bonus. It shows that
there are good deals to have, and that insurers are prepared
to recognise good drivers and take measures to win their
Getting cheaper car insurance
It is possible to get a better quote on car insurance by
shopping around, choosing low risk cars and taking measures
to secure them. For women, this may offer the opportunity to
offset the EU directive effect to a degree, and feel the
impact of 'fair' and gender equal pricing less keenly!