Female motorists face insurance premiums hikes of up to 94%
A new tracking survey, looking into how the EU Gender Directive will affect the premium rates of both genders once the new legislation kicks in, has highlighted that at present the difference in premiums is 41%.
Some male drivers currently pay on average of £315 more for insurance than their female counterparts, but this is set to change on 21st December.
Scott Kelly, Gocompare.com’s head of motor insurance, said: “From 21st December insurers will be prohibited from using gender in their pricing. But, as our survey shows, there has been no equalisation of rates to date, so the introduction of unisex rates is likely to have a sudden and dramatic impact as insurers seem to be holding off until the last minute.
“Over the period of our ‘Gender Watch’ study, premiums for both men and women have continued to increase and as a result the gap between the two has actually widened.
“We expect that the implementation of unisex rates at the end of the year will see premiums equalised at the higher male rate, rather than at the lower rate for females.
“If that is the case, women drivers will see their premiums rise by just over £300 on average, but for younger age groups the increase could be as much as £2,000.”
Scott continued, “There is an argument that, to beat potential increases, women with a renewal coming up early in the New Year should consider trying to lock into a better 12 month deal now.
“But, before taking any action they should check their current insurer’s cancellation fees and the long-term impact of losing this year’s no claims bonus entitlement.
“Also, breakdown cover, motoring legal protection or other cover included within the policy will end and the premium paid for this cover may not be refundable.”
Scott added that this is unchartered territory for the insurance world, and the industry is not entirely sure as to what impact of the gender directive will be. However, motorists are being urged to shop around as with any other product to ensure that they get the best deals for them.