Gap between male and female car insurance premiums is 41%

Three months before the EU enforced equalisation of male and female insurance premiums comes into effect, a major new tracking study reveals that the difference between male and female car insurance premiums is currently 41 per cent with male drivers paying on average £315 more for their insurance than female motorists.

Gocompare.com's ‘Gender Watch', an analysis of over 10 million motor quotes, unveiled an even bigger gap in rates for teenage drivers with premiums for males almost double those of female motorists.  The study suggests that the introduction of unisex rates from 21 December 2012 will have a huge impact on young female drivers who could see their premiums rise by as much as £2,000 (a 94 per cent increase).

Gocompare.com established ‘Gender Watch' to monitor male and female motor insurance rates ahead of the European Court of Justice ruling on gender equality, which comes into effect on 21 December 2012.  The comparison site has monitored premiums for male and female drivers over the last 20 months, across a range of age groups in order to calculate the average difference in rates.  

The ‘Gender Watch' findings

Male and female rates across all age groups:

At the start of the study (January 2011) there was a 37 per cent difference between rates.  If equalisation had been introduced at this point, female rates would have needed to increase by £282 (or male rates reduced by the same amount).

At the end of August 2012 there was a 41 per cent difference in male/female rates.  While this figure is higher than at the beginning of 2011, the gap between rates has slightly narrowed during 2012.  The average difference in January 2012 was 44 per cent at £353.

Male and female rates in the 17/18 year old age group:

In January 2011 the difference in male/female premiums was 88 per cent, with male drivers paying on average £1,776 more for their insurance.  By the end of August 2012 the difference increased to 94 per cent.  Again, while the gap in rates has risen from the start of the survey, it has marginally narrowed over the course of 2012.

Gocompare.com's head of motor insurance, Scott Kelly, said, "From 21 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.  Unisex rating is uncharted territory for insurers and we won't know the full impact until next year, so female drivers will be taking a gamble by switching now. However, one thing that will remain constant for both women and men is the need to shop around for their car insurance on a price comparison site like Gocompare.com to ensure that they get the cover they need at a competitive premium."