Recent changes in the EU mean that women will soon face higher rates in terms of their insurance premiums. For most, this will hit them hardest in their motor insurance premiums.
For many years, female drivers have received a discounted rate, on the basis that women have fewer accidents. The forthcoming changes mean that these days will be no more and so men and women will be treated fairly and equally when it comes to insurance rates.
The Association of British Insurers have estimated that as a result of this change, women drivers under the age of 26 face a 25% increase in car insurance rates, with a 10% drop in rates for men within the same age group.
Essentially, what this means is that in the future, gender cannot be taken into account when accounting premiums.
The questions that seems to be on everybody’s lips is, ”is this fair?” I’ve heard contrasting views, but it seems to me that the pricing of insurance should always be based on individual merit, on a case by case basis. Things to be considered should be your claims history, your experience, the vehicle in question and the mileage, to name a few.
I suppose statistics are strong, and so one could argue that if history shows us women have less accidents, then surely this should be a rating factor? But then again, you could argue that if there is a claims history to look at, then such statistics should only be used for new drivers?
Either way, I’m expecting to be doing a lot of motor insurance quotes this year!
LFC Evans Insurance