By Rob Starr, Content Manager, Big4.com
The EU Gender Directive will remove price differences between men and women on insurance products from 21st December 2012. PwC predicts younger women could see their motor insurance premiums rise by up to 40% as a result.
“For young female drivers aged under 25 this will probably result in motor premium increases of between 10% and 40%. For young male drivers conversely, the Directive could result in premium decreases of up to 10% depending on their claims experience,” said Mohammad Khan, insurance partner, PwC. “The EU Gender Directive will have a significant effect on the premiums charged to young drivers from December 21 onwards. ”
Khan also said that statistics show young male drivers are more likely to have more severe accidents and make larger and more frequent claims on their car insurance than young female drivers. Insurers will have to ignore this fact to ensure they comply with the Directive he said.
“For young female drivers who face steep increases in premiums, it may be worth considering new technologies such as telematics or pay as you drive insurance as this may be cheaper,” he said.