Women's car insurance could rocket

Article Claire Holden
Dec 20, 2012
Women's insurance premiums set to soar

From 21 December, car insurance premiums for women could soar by as much as 24 per cent.

Car insurance premiums for women could increase by as much as 24 per cent from 21 December, according to insurance comparison site Confused.com.

That’s the date that new laws will come into play under the EU’s Gender Directive, forbidding insurers from offering discounts to women drivers.

Women’s premiums are predicted to rise on average by £299, while women under 25 will fork out on average £1,546, up from £1,247 in November this year, Confused.com predicts.

Male drivers generally spend more on car insurance than their female counterparts because men are statistically less safe behind the wheel, with more accidents and more claims.

Women aged 17-25 in central London are likely to suffer the insurance hikes the most, as the average premium is predicted to cost £2,599, an inflation of more than £500.

Confused.com is encouraging female drivers to think about buying next year’s policy before the Gender Directive kicks in so they can secure today’s prices for their new policies.

Gareth Kloet, Head of Car Insurance at Confused.com, said that recently the motor insurance market has been highly competitive, but that might not be the same after the new regulations kick in.

“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.”

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