You may be aware that back in December 2012 the EU Gender Directive came into force as a result of which motor insurance companies as well as other insurers were no longer able to charge men more for their car insurance than women based upon their gender. Prior to that date, insurance companies tended to charge lady motorists less for their cover.
Well, according to the most recent Confused.com Car Insurance Price Index that looked at the average cost of car insurance for the first quarter of 2019, men were paying an average of £805 per annum for fully comprehensive car insurance but women were paying an average of £709 per annum for the same level of cover. That is a difference of £96 per annum that, we are sure you will agree, is a significant difference.
So, if the EU Gender Directive decreed that insurers were no longer able to charge males more than females for insuring their motor vehicles, why are men, on average, being charged more for their cover?
Well, one reason could be that, on average, men tend to drive cars that are worth more than those driven by women. The cars also tend to have more powerful engines. Both these factors impact upon how much an insurance company charges for providing cover as there is greater risk of having to pay out more to replace a car that is of a higher value due to theft or a road traffic accident and also people driving more powerful cars are more likely to be involved in a road traffic accident.
Another reason could be that, on average, men are more likely to get a driving conviction resulting in points on their license than women. As a result, the cost of providing cover is likely to be higher for those policyholders who have points on their driving license.
Another reason is that, on average, women move their car insurance from one provider to another more frequently than male drivers indicating that females are more likely to be looking for a cheaper deal.
Whether you are a man or a woman you may wish to shop around for your car insurance should you be either seeking cover for the first time or if your existing policy is shortly coming up for renewal. Price comparison websites are one way to try to source competitively priced car insurance quotations.