Financial News
- 22 December 2012, 6:29
Women Drivers Face Insurance Premium Rise
Women drivers could see their insurance premiums increase by around 25% as new laws come into force that ban setting prices according to gender.
The European Court of Justice ruling follows a 10-year legal battle against the proposals by insurers.
The change is not confined to car insurance but also covers pensions and life insurance.
Women have benefited from smaller car insurance premiums due to their lower accident rates, but predictions of how they will be affected vary widely.
Some analysts believe younger women could see their premiums almost double, with average rises of around £300 a year.
Those aged between 31 and 35 are also likely to be hit with a rise of around 10%, or £53 a year, according to research from comparison website Confused.com.
Michael Ossei, personal finance expert at price comparison website uSwitch, told Sky News that women aged between 18 and 25 will be heavily affected by the change.
More than a third of the women the website had surveyed would have to cut back their living expenses to cope with higher premiums and one in 10 may end up selling their car.
Others, though, forecast the increases could be gentler than expected, provided insurers can piece together enough information about someone as a driver.
Kevin Pratt, insurance expert at the MoneySupermarket website, said he hopes insurers will place greater emphasis on factors such as job, type of car, driving record, any security measures on the car and age to make sure drivers can still get a reasonable price.
The new rules could also hit men reaching retirement, with annuities possibly decreasing by up to 13% a year. Women may see their life insurance policies increase by 16%.
Currently, men usually get a higher pension income than women because, on average, they die younger.
The Government is strongly opposed to the change.
Transport Minister Stephen Hammond told Sky News it was unnecessary and that they were working to manage the impact.
"One of the reasons we are against it (is that) the basic principles of insurance previously has been insurance based on risked rather than just gender-based."
The court ruling is an attempt to end discrimination and to bring about equality between men and women - but it is a decision that will come at a price for many.
what do you think?
liam hoy
Ok so theyve finally closed the huge gap. However it still doesnt compensate men for the differance weve paid over the years. I say find a happy medium between the prices rather than just stick a lump on the womens. Plus why the heck have men paid more.... everyone knows women cant drive :)
shirley sutton
Check with the insurance companies women have less accidents and claims than men
Louisa Gieldon
Shirley you know, i know but don't rise to it! ;-)
blue side
Shirley there are fewer female drivers but sorry some are dangerous - have not seen guys doing their make-up whilst driving
Angela Gildea
Just boy racing-women don't feel the need to wave their tackle every time they start the engine.
davenlesley
Angela. May the lord protect us from women who have tackle to wave !
shaun spencer
I guess if woman want equality it must go across the board.their have to take the rough with the smooth.what about homeless woman why are they a priority before a man.
shirley sutton
Because homeless women are a target for depraved men
Diane Rogers
Well said if some women want equal everything that's the price they have to pay
Louisa Gieldon
I agree with most of your post Shaun. But the bit about homeless women i disgree with. I know it may seem unfair but vulnerable people get more protection under law and women are at more risk of assault.
davenlesley
Louisa. That is where the whole rush to equality falls apart. Men & women are different. I agree homeless women are more vulnerable but women drivers are also a lesser insurance risk but that hasn't cut much ice with the EU.
blue side
Dave you should come to my area. Also what are the numbers as we are playing statistics are there as many women drivers as men, do they do the same average annual mileage etc. What the ECJ has done is take the line of equality which follows through a whole list of issues. I do not think the homeless vulnerability issue relates to this subject and has issues of its own.
hollywoodbowden
It works out cheaper to have no insurance and just pay the 200 fine when you get to court haha
shirley sutton
That's why insurance is so bloody expensive cos that's what lots of people due u t of course you're involved in an accident with one of them and you can't claim
hollywoodbowden
Insurance ain't worth a jot they will do what ever they can to not pay out most people in bumps now sort it out between them without going through insurance
romsey1891
If the police are aware that your vehicle is uninsured,it is impounded,until said documents are produced.A daily storage charge is also applied.If the vehicle still remains uninsured it is either scrapped or sold at auction.
Diane Rogers
What a stupid attitude what if a person was killed would they have to come back to sort it out for their families.If what you suggest happened to us we would now be without a car as a drunk driver wrote our car off when it was parked outside our house
hollywoodbowden
So not like you go to prison for anything these days is it. So they take your car off you just buy another little run around still works out cheaper than insurance
Louisa Gieldon
Ladies i think your legs are being pulled!
hollywoodbowden
Silence I am about to speak take my advice and just pay the fine in cort plus with all the police cuts your less likely to be done its a win win
davenlesley
Relax people. HWB isn't saying he is uninsured only that many people see not having insurance and taking the chance as the cheaper option. Sadly I think he is right especially where young drivers are concerned where the insurance is often 3 or 4 times the value of the car
blue side
The insurance industry has a number of things to answer and do not help. Me lady had her vehicle damaged insurer sent her to a body repair shop and the first question was who is paying if she paid it would be 2000 cheaper. After a battle she got the insurer to agree she went to her own people and the 6000 job was done for 2500 and what brilliant job it was. Have heard similar stories . so who pays for the rip off WE DO
Peter Coates
Another scam by our gutless government. They all own shares in these crooks.
shirley sutton
Women drivers paid less cos they made less claims than men and had fewer accidents so now we've got to pay more because of the eu ruling is anyone actually going to pay less or are the insurance companies making a huge killing? Surely fairest way to rate insurance is against risk so why are the eu meddling
hollywoodbowden
Woman are rubbish drivers there so oblivious they may aswell still be asleep
davenlesley
Shirley. Very sensible. Insurance is about risk not sex but since when did the EU ever come up with a common sense proposal in their blind rush to equality at all costs.
shirley sutton
Government all talked and no action if greatly opposed the change then stop it journey supposed to be running this country not the eu we didn't elect them
Anthony Smith
It should be a fixed rate for gender,age and experience. It is not fair that someone should be paying more than someone else
Brian Holmes
Insurance premiums should be calculated individually. It has always been a complete nonsense to calculate by gender. Can you imagine the uproar if they tried to calculate by race or sexuality! Very many men have been penalised unfairly for years simply for being born male. If you advocate equality, then it has to be across the board without exception.
herewegoagain10
Sorry ladies but you can't pick and choose which part of equality you want. Now do you think that with all this additional revenue the insurance companies might reduce the premiums for male drivers? No I don't think so either. And finally I would agree that female drivers are far better than men. Have you ever seen a bloke who can drive, put on make up and do their hair whilst keeping unruly kids under control and still travel at warp speed? Phenominal
davenlesley
hwg. You will have the sisterhood after you for your summary of women drivers but at least it made me laugh. Quick hide here come the girls!
Sue Steele
No but i have seen a bloke picking his nose,talking on his mobile,eating a pizza,and reading a newspaper at the wheel,whilst driving like maniac.Now that takes some beating!
Charles Rickards
What the European law makers cannot legislate for is the fact that men and women are different. Equallity is in reality never achievable as things have to be the same to be equal. Insurance is about risk and this is always based on past experience as the future cannot be accurately predicted.
davenlesley
Charles. Exactly and very well explained. Pity the bright sparks in the EU can't see that in their blind pursuit of equality at all costs.
happymike CHESTER
Just like that dozy woman office worker back in the 80`s demanding to work till 65 like the men .The Tory Government seized on it and raised the women`s retirement to 65 O/K for her sitting square xxxxxx on good wages but not for low paid women in sweatshops.
Diane Rogers
Well said I can't see me being able to do my job till i'm 65 or 66Thank you very much women libers
davenlesley
Diane. It was the girls who let the genie out of the bottle. You used to retire at 60 until the demands for equality started. What happened? you were invited to work for 5 more years to attain this so called equality. Hardly what you wanted but so predictable.
Diane Rogers
I was not one of them I would be happy to retire at 60.This is how some women have ruined it for some of us.
davenlesley
Lets all applaud the EU for this latest piece of nonsense. Insurance is based on risk not sex and statistically women drivers are a lesser risk and should pay lower premiums. Equality gone mad.
Brian Holmes
Dave, I don't agree that every woman driver is better than every male driver. Premiums must be calculated individually.
davenlesley
Brian. I see your point but insurance companies look at things across the board and statistically they calculate women are a lower risk. I have seen some awful women drivers but can say exactly the same thing about men. I also think premiums are calculated individually now. Make a claim and pay more next year.
Peter Coates
UKIP for me.
hollywoodbowden
Woman should pay more all drive to slow haven't got a clue at a roundabout either to busy playing with them rats maze hair cuts than driving
movvi
Great collection of generalisations there! "Rats maze hair cuts" are a new one on me! Tee hee.
david
my wife has driven for 15 years not even had a bump.1 claim when a delivery driver ran into her parked car..over the 15 SO ???????????????? WHY SHOULD WOMEN BE MADE TO PAY MORE ???????RIP OF BRITAIN AGAIN
Brian Holmes
David, I agree your wife should pay less as she is a safe driver. But why should a safe male driver pay more than her?
movvi
We'll accept that statistically women have fewer crashes, but is this worked out on the number of claims made or is the number of male and female drivers taken into account, I wonder? I mean, if, say, 70% of accidents are caused by men, this means nothing if there are 4 million male drivers and only 1 million female ones. There are more to crash! Also, women who drive appallingly have been benefiting from this crackpot rule for years, while men who drive well have suffered. It should be based on the individual's ability to drive well, rather than what's in their pants.
andrew
Leaving aside the rights and wrongs of this argument, why should we be told what to do by a bunch of faceless, unelected beaurocrats in the EUSSR? European courts should have no jurisdiction over the sovereignty of our Parliament.
hugh japenos
insurance is a very competitive business; why else would they offer discounts for women? but i understood that statistically women drivers make more small claims, whereas men are more likely to have serious accidents. all due to hormones, of course. anyway in principle all of us should be treated as individuals, although it's typical they'll start charging women more rather than men less...it's business after all!
davenlesley
Hugh. Of course womens premiums will go up in much the same way as when the retirement age was equalised. Did they settle on 63 for everyone. Not likely . Mens remained unchanged and the girls had to work 5 more years.
surly seagull
Here we go again ... Statisticaly men have fewer accidents as there are more men drivers ,womens policies load their excess to make premium lower so they will not make a claim as not cost effective ,men are generaly the main policy holder in a family so if a spouse has an accident it is logged as a male driver ,men also do more long distance driving in a relationship so are more prone to serious accidents .Look this up you will be surprised ,it is a scam insurance companies use to get more money and massage womens egos to get custom .How do I know because I underwrite insurance for a major company .So women get your claws back in ,get some proper facts not the shaggy dog stories the media band about .
robbie wilson
7:16am on 21/12/2012
Ifd the government are opposed to it then why is it happening.they can do what they want when it suits.however bigger premiums mean more money for them to waste anyway.rip off britain.when will it end.
blue side
1:30pm on 21/12/2012
Not quite correct robbie the ECJ ruling is binding mind you around here some of those women should get a surcharge the way they drive and the men die you cause they get run over by them