One month on from EU gender ruling and young women pay the price
A referendum may be a long way off, but young women will be wishing for a very swift exit from the EU. One month on from the EU gender directive, ruling that car insurance premiums can no longer be differentiated by gender, 17 and 18 year old female drivers have seen premiums jump by a shocking 50%. Data from uSwitch.com, the independent price comparison and switching service, also shows that men have been quick to gain from the ruling.
The data, based on quotes of over 20,000 drivers before and after the 20th December 2012, shows that car insurance premiums for female drivers have so far risen by an average of 8% across the board, less than the industry prediction of 25%. But young women are witnessing rises that are twice as high as this prediction. Average premiums for 17 and 18 year old female drivers have jumped from £1,307 to a staggering £1,965 - a 50% increase. 19 to 21 year olds have also seen a jump of 13%, taking their average premium to £1,098.
As expected, the ruling has come down on the side of men. Overall premiums for male drivers have dropped by 6%, with 19 to 21 year olds seeing one of the biggest decreases of 12% decrease. Interestingly, male drivers over the age of 71 have also seen their premiums drop by 12%.
All in all, the gender gap has significantly narrowed, from 14% to 2%, showing that insurers have jumped on the new legislation. However, across every age group except the over 71's, men still pay more; the average premium for men is £619, compared to £529 for women.
Michael Ossei, personal finance expert at uSwitch.com, says: "Young women that have just passed their test may well wish that Britain had never stepped foot inside the EU. A 50% rise in premiums could have a devastating effect on newly qualified women trying to get on the road.
"But there's not quite cause for young men to jump up and down in celebration. Despite the shock hike in female premiums, 17 and 18 year old men still pay the most for their car insurance. It's our hope that the relentlessly high premiums do not discourage young people from learning to drive.
"The gender gap may be narrowing but it's as important as ever to shop around to find the best deal at renewal time - with over one hundred providers on the market, there is a big difference between the cheapest and the most expensive quote. A little bit of research will go a long way towards limiting the financial impact of this judgement and not letting cost force drivers off the road."