EU law could force 25% of women off road
The EU gender directive will make it illegal for insurers to discriminate on the grounds of sex, introducing parity in the cost of car insurance cover.
As women are responsible for far fewer accidents and claims than men, their premiums are currently proportionately lower than their male counterparts.
However, that will change when the law alters on 21st December this year. According to a survey carried out by USwitch.com, the resulting hike in the cost of female motor insurance policies means 13% won’t be able to afford the insurance and 11% may have to sell their cars.
It also claims that 35% of women will have to cut their living expenses to afford higher premiums, and 5% will have to borrow money. Only 18% of women believe the EU ruling is fair and 25% believe they will end up subsidising riskier drivers.
However, 66% of men believe the ruling is ‘about time’ and an end to unfair discrimination.
Michael Ossei, personal finance expert at uSwitch.com says:
“Statistically more likely to claim, men have grown used to paying hefty motor insurance premiums, but this is all set to change. From next month men will no longer be penalised for their ‘boy racer’ reputation and will be charged the same as women. For the first time ever, men and women will be driving on a level playing field.
“While millions of male drivers will be celebrating cheaper premiums, female drivers need to brace themselves for significant price rises. It’s more important than ever that they shop around to find the best deal at renewal time – with over 100 providers on the market, there is a big difference between the cheapest and the most expensive quote. A little bit of research will go a long way towards limiting the financial impact of this judgement and not being forced off the road due to cost.”