Why it is critical that women review their motor insurance in 2012

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Monday, 13 February 2012 09:20

For many years, women drivers have enjoyed cheaper terms for motor insurance than their male counterparts and there has been a solid, statistical reason for this.

Evidence collected by the UK government, as reported in the Daily Mail on 3rd March 2011, has revealed that 92 per cent of the driving convictions in the UK are awarded to men. Furthermore, 98 per cent of all those convicted of dangerous driving are men.

Due to their more careful, safer and considered approach to driving, women have enjoyed the benefit of cheaper car insurance premiums, but now this state of affairs is set to change. Chiefly because of a landmark ruling made in March 2011 at the European Court of Justice, following a case brought by a Belgium-based consumer group that claimed that the current methods for assessing car insurance premiums based on gender were unfair.

The EU judges ruled in favour of the group, stating that the Lisbon Treaty’s Charter of Fundamental Rights, which aims to eliminate inequalities between the sexes and promote equality across all activities, made such practices unlawful.

Because of this controversial decision, the EU court ruled that it is unfair for men to be charged more for their car insurance than women, even though statistics have conclusively proven that young men are far more likely to be involved in a serious crash or make a claim on their motor insurance.

The ruling, which comes into force on 21st December 2012, will mean that women drivers aged under 26 will face a drastic increase in their car insurance premiums later this year. The Association of British Insurers estimate that women aged 26 and under will face a 25 per cent rise in the cost of their motor insurance.

This means that from later this year, women drivers could pay, on average, an extra £4,300 between the ages of 17 and 26 for their car insurance. In comparison, men in the same age range should experience a drop of around 10 per cent per annum (£275 per year) in their premiums.

At present, most UK and European insurance companies base their premiums against the perceived risk of the motorist, and gender is one of the most important factors when making this initial assessment. This is because an overwhelming amount of statistical evidence reveals that men under the age of 22 are 25 times far more likely to commit an offence while driving than women. They are also more likely to be involved in an accident and a young male driver is more than twice as likely to make an insurance claim.

The ruling by the European Court of Justice will make it unlawful for insurance companies to make a risk assessment of a proposed policyholder based on their sex. Indeed, when the ruling becomes law, insurance companies will only be able to consider the age of an applicant when assessing their potential risk.

With such an important change in legislation looming on the horizon, it may well be pertinent for women drivers to be aware of this pending deadline in order to try to negate the hefty anticipated rise in cost of motor insurance.

In what is already a poor economic climate, seeing monthly insurance bills rise by 25 per cent is an outgoing that many young women motorists can scarcely afford. As such, it may well be prudent during 2012 to ensure that female motorists get the best possible car insurance deal possible. A reputable price comparison website can help you locate the best value policy quickly and easily.

While this is a good idea at any time, it may well be a vitally important one for the young female motorist in the weeks leading up to and following December this year.

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