Over three quarters of women believe European ruling on car insurance is unfair

Young-female-driver

According to a recent report published in the wake of the recent European Court of Justice ruling which found gender bias in the insurance industry to be discriminatory, 1 in 8 women believe the ruling is unfair.

Currently, women enjoy cheaper rates than male drivers on car insurance as statistics show that they are less likely to be involved in an accident, and even when female drivers are involved in a crash, their claims are lower.

However the European Court of Justice this week ruled that using gender as a means by which to calculate risk by insurance companies was tantamount to discrimination, and so from December 2012, gender will no longer be taken into consideration when calculating car insurance premiums.

The upshot of this is that women can expect higher rates of car insurance, while male drivers are likely to see a reduction. However a recent report found that the vast majority, 78%, of those women questioned thought the ruling was unfair. Only 22% of respondents thought the ECJ ruling was just.

Not surprisingly, the poll found that male drivers were happy with the ruling, with 74% declaring that they agreed with the decision from the court in Luxemburg that gender bias is discriminatory and that they welcome the change in the rules.

Women will face higher car insurance premiums following ruling from Europe

woman-driver

It’s been the subject of much discussion over the course of the last few months, and now it’s official; women will have to pay more for their car insurance in the future following a ruling from the European Court of Justice which found that gender bias in calculating insurance rates is discriminatory.

Women currently benefit from cheaper rates of car insurance as they are viewed as a lower risk group compared to male drivers who are statistically more likely to be involved in an accident. Figures also show that male drivers tend to be involved in more serious accidents than their female counterparts, and so in the past, insurance companies have used these kinds of statistics to calculate risk.

However the European Court of Justice in Luxemburg has ruled this week that using gender as a “risk factor” to calculate the cost of car insurance premiums “constitutes discrimination”.

The ruling means that from December 2012, insurance companies will no longer be able to offer lower rates of cover to drivers based on their gender. As a result, female drivers could face an increase in the cost of their insurance of up to 25%, while male drivers could see a reduction of as much as 10%.

As well as affecting the insurance premiums, the ruling will also have an impact on the way life insurance and pensions are calculated.

Young female drivers could be hit by car insurance price hike following new ruling

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Young female drivers could be about to see their car insurance premiums rise by as much as 50% if an anticipated ruling from the European Court of Justice is made next month.

Typically, young male drivers are hit by the highest car insurance premiums as they are deemed riskier to insure. However if the ruling from the European Court of Justice goes ahead as planned, it would make it unlawful for insurers to calculate premiums based on gender.

Up until now, insurers were able to justify charging young male drivers more for their cover as there is strong statistical evidence to suggest that young men pose more of a risk to insurers compared to young females. Males aged 17-22 years are twice as likely to make a claim on their cover compared to their female counterparts, while young men are 10 times more likely to be involved in a serious accident.

Despite this evidence, if the European Court Rules that calculating insurance premiums based on gender is discriminative, women could be about to see their annual car insurance premiums rise by as much as £1,000 a year, while young male drivers may note a slight decrease in the cost of their cover.

2010 was a record year for car insurance price hikes

Brand-New-Cars

It’s official, the figures are out and they have revealed what we all suspected: 2010 was the worst year for car insurance price increases.

On average the figures showed that premiums rose by 38% which translates into an extra £200 being added to the cost of cover. However the situation was even worse for those with Third Party, Fire and Theft policies as these saw an increase of 56% on average.

While the age bracket 17-21 are typically worst hit by price hikes in car insurance, it appears that this was not the case during the last 12 months as the group which reported the biggest rise in car insurance rates was those aged between 51-55 years.

However it’s been suggested that parents adding their children on their car insurance policy were responsible for the majority of these increases, possibility as a knock on effect of the high rates of cover for drivers in the younger age bracket.

The rise in the cost of car insurance during 2010 was triple the increase reported during the previous year. The average cost of annual car insurance across the board of age brackets now stands at £695, which is up £200 on the average cost of car insurance in 2009.

Car insurance price comparison sites are now becoming increasingly popular as motorists are more inclined to shop around for cheaper deals on cover as they attempt to beat the rise in premiums.

Older female drivers pay more for car insurance

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Older female drivers are paying more on average for car insurance according to a recent report by a consumer watchdog.

The research found that some insurance companies are charging as much as £80 more for cover for an older female driver compared to her male counterpart.

The consumer magazine Which? carried out the study by requesting two sets of quotes on a car insurance price comparison website. The first quote was for a single 60-year-old female, the second for a single 60-year-old male, both with identical addresses, cars, driving experience, and no claims bonuses.

Which? took quotes from five insurers and found that the price for the female driver was more expensive in all cases, ranging from as little as £4.20 to £80 for the cost of an annual policy.

However, the trend in car insurance prices for younger driver is the opposite, with male driver aged between 17-25 years being hit hardest by high car insurance charges, while female drivers of the same age enjoy considerably lower car insurance rates.

As time goes on, this pattern is reversed, the Which? survey has just revealed. A spokesperson for one of the insurance companies involved in the study explained that their premiums are based on risk factor, and that gender is one element which does have an impact of insurance rates.

Car insurance could be about to rise for female drivers

Young-female-driver

Car insurance premiums could be about to get a whole lot more expensive for female drivers if the European Court of Justice rules that gender bias insurance rates are illegal.

Generally speaking, female drivers currently enjoy lower insurance cost compared to their male counterparts. The gap in motor insurance premiums between the sexes is most noticeable in the younger age bracket where young male drivers are hit hardest by costly insurance rates.

Insurance companies offer cheaper rates of cover for female drivers as statistically, women are involved in fewer accidents, and when they do make a claim, it tends to cost less. Because women are deemed to be less of a risk for insurers, they benefit from reduced insurance costs.

However the European Court of Justice is looking into whether this practice of basing car insurance rates on gender, contravenes European Union laws. If the court finds this does conflict with EU laws, insurance companies will be forced to change the way they calculate insurance rates for drivers.

If this happens, it would have a detrimental effect of insurance providers such as Sheila’s Wheels and Diamond who specialise in the provision of motor cover for female motorists.

Men and women even shop for car insurance differently

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According to a recent study conducted in Singapore, men and women are poles apart when it comes to the strategies they use to track down car insurance with the majority of women opting to consult their partner on the matter, while men would seek the advice of an insurance agent.

400 Singapore motorists were polled as part of the study which was commissioned by motor insurance price comparison website, CompareXpress. The findings revealed that half of all the women drivers who were questioned would discuss their car insurance options with their spouse or partner before signing up to a new policy. However just 3 in 10 men said they would consult their partner when searching for motor insurance.

The study also found that when it comes to researching car insurance online, the sexes are equal with both using online resources to track down the right policy for them. However women are less likely to ask to a wide range of quotes from different insurers with just 2 in 10 requesting a car insurance quote from a broker or direct from an insurance company, compared to 4 in 10 men.

It certainly pays to shop around for car insurance quotes as the study in Singapore showed that those who did compare rates of car insurance tended to pay lower insurance premiums.

Women less likely to take out comprehensive car insurance

Young-female-driver

Women are less likely to take out comprehensive car insurance when compared to men, according to a recent survey.

The research was commissioned by The Post Office and found that just 44% of women had taken out comprehensive cover on their motor, which is significantly less than the 58% of men who did have comprehensive car insurance.

The Post Office says it recommends comprehensive insurance for all motorists as it offers the widest range of protection including cover against theft, damage, and some policies even offer breakdown cover.

Third party, fire and theft policies offer a lesser level of protection, although drivers are often tempted to opt for this policy as it is cheaper than comprehensive cover. The advice being given from The Post Office is to thoroughly read through a motor insurance agreement before signing on the dotted line so as to be clear about what exactly is covered as part of the policy.

Separate research found that women are less likely to be involved in a head-on car collision compared to men, however they are more prone to accidents at slower speeds such as at traffic lights, car parks, and roundabout. Female motorists are the worst culprits when it comes to bumps and scraps to their vehicles, all the more reason to take out a comprehensive insurance policy perhaps?!

High up on the average women’s list of priorities for their motor insurance policy, is cover to protect against the theft or loss of car keys.

Women less likely to clean their own cars

car-wash

Insurance retailer Swinton conducted a survey of 3,000 women drivers and found that a high proportion of these motorists would enlist the services of a professional, or a family member, to clean their car instead of doing it themselves.

18% of the women who were questioned said they would get a partner or their father to tidy their vehicle or pay a professional valet to give their car a spring clean, to avoid doing it themselves. However a separate study discovered that men are probably the best candidates for car cleaning as 13% of the men they spoke to said they got more pleasure out of cleaning their car, when compared to cleaning their homes.

Some of the most common items left in women’s cars include discarded food wrappers and empty drink bottles and cans, also old newspapers and magazines and used parking tickets.

Despite the hesitance of women to clean up their cars, over three quarters of the female motorists who were questioned said they were embarrassed by the state of the inside of their cars. However almost all of the ladies who were asked, 98%, said they would ensure their car was thoroughly cleaned if they were selling it.

Car insurance experts at Swinton recommend that drivers keep their cars as tidy as possible as leaving items on display could make a vehicle a target for thieves.

Female drivers feel the pinch after being hit by hike in insurance rates

female-driver

Recent research has revealed that young female drivers are really feeling the pinch after being the worst hit from the rise in insurance rates.

According to the survey conducted by a car insurance price index company, over the last 12 months car hire insurance prices have soared by 14.3% with the average cost of car insurance now standing at £524, which is up £66 when compared to the same period in 2009.

Traditionally female drivers have always benefited from lower insurance rates in comparison to men as statistically, they are involved in less accidents, meaning women are seen as a lower risk than men. However the recent figures showed that females aged between 21-35 were experiencing a rise in insurance cost above the market average.

Some experts believe that insurance companies are trying to narrow the gap between young male and female drivers with the sudden surge in rates of insurance for women drivers in this age group.

As claims costs are continuing to rise, industry experts warn that we haven’t seen an end to the increase in insurance premiums.

Due to the increase in insurance prices across the board, more and more people are said to be turning to price comparison sites as they shop around in order to seek out the very best deal available.