Brits in the dark about Gender Directive
According to Confused.com, only 53% of those surveyed knew what the new legislation will mean for them, with knowledge of the directive especially low in the North-East.
Only 35% of those polled expect to be affected by changes from the 21st of December, the date from when insures cannot use gender to price policies.
Nearly 70% are not worried about the directive, with a further 53% having no plans to do anything should prices go up.
However, Confused.com says more awareness is needed of the new legislation to prevent consumers being hit with an unexpected insurance price hike in a two weeks’ time.
Traditionally women were thought to be safer drivers, and therefore were often given lower car insurance quotes than their male counterparts.
It is predicted that annual car insurance premiums may increase by 24%: this represents an average of £2582 for women under 25.
Gareth Kloet, head of car insurance at Confused.com, said: “The EU gender directive which takes effect on 21 December looks likely to spoil things, bringing uncertainty into the market once again and is likely to result in different insurance companies adopting different strategies to gain and retain the best business.”
Life Insurance for women is also expected to increase, as currently women pay on average 22% less than their male counterparts.
This is because women tend to live longer and are also less likely to die in comparison to men over the term of the policy, and so are less likely to make a claim on a life policy.
Annuities, a policy taken out to convert a pension pot into an annual income that guarantees an income during your retirement, will also be affected from the directive.
Currently women get a pricier deal as they tend to live longer than men. From the 21st of December, experts predict that prices for annuities for women may become cheaper.
Kate Rose, head of Annuities at Confused.com, said: “Men coming up to retirement should consider acting quickly to get the best possible rates, however with early reports of increases between 6-11%, women may want to hold off to secure better rates.”
People are being urged to shop around and compare prices to hunt for the best deals.
Female drivers in particular are being encouraged to consider buying next year’s policy before the Gender Directive takes effect so that they can secure new policies at today’s prices.
Rose added: “No matter what your gender, we strongly urge all consumers to compare their options rather than accepting the offer they receive from their pension provider to ensure they get the best value and most suitable annuity for them.”