Ladies still get cheaper car insurance than men, but for how long?

December 12th, 2012 in Car Insurance Advice

The EU Gender Change

Finally, some good news for those of you who see red whenever you get your car insurance quote through the post - your prices are at their lowest since the end of 2010, coming in at a cool £757 on average. Of course, this number factors both men and women into the same equation, so since women are generally better and safer drivers than men (any fellas reading this, sorry, but it's a statistical truth), how are the prices looking for lady drivers specifically? All the figures used here are averages based on an annual comprehensive policy and are compared to 2011.

Every few months and the team at Towers Watson take a proper look at our car insurance prices and figure out how your age, location and gender dictate how much you pay. Getting the sweeping generalisations out of the way early, men are paying £807 a year on average compared to only £695 a year for women. Not only that, but women's prices on the whole have reduced more than men, going down 11.7 per cent against the men's 9.3. Nicely done.

On December 21st the EU Gender Directive comes into play, which is meant to equalise the playing field as insurers will no longer be able to take gender into consideration when working out car insurance premiums. It

was feared that some insurers would jump the gun and start to change their prices early, potentially making women's prices rise to the same level as men's. At the moment at least there's nothing to suggest that this is the case, as women in almost every age group have seen bigger reductions in their prices than men (the only exceptions are drivers between 66 and 70 years of age, with men's prices being reduced by 8 per cent against 6.9 per cent for women's).

What's going to happen in December?

Younger female drivers are likely to feel the sting of any prices rises much more than older drivers. Women between 17 and 20 years of age are paying £1707, almost half what men pay at £3314. This is a pretty substantial gap, but it narrows considerably as drivers get older. By the time they reach 41-45, women are paying £625 a year, only £5 less than men. Based on this, it looks that any equalising effects of the gender directive aren't going to do much to older drivers, but young women might be left severely out of pocket this December.

So what can we do?

For now at least it's good news all around for female drivers. The EU Gender Directive hasn't yet been felt, but with only six weeks to go until it hits you won't have long to celebrate having these lower prices. If you've recently taken out a new policy, you won't be affected by the directive until your next renewal in 2013. Otherwise, depending on your car insurance provider, how long you've left on your policy and what their cancellation fees are, it might be worth taking out a brand new policy before December 21st rolls around and you're forced to pay the same as men.

This article was written by Jamie Gibbs, the resident blogger for women's car insurance comparison site