The EU gender directive - one year on

coloured post it notes with male and female symbols
It's been a year since gender has played a part in the price of car insurance premiums
"The car insurance market remains in flux with further developments ongoing" Scott Kellly,
  • | by Kristian Dando

It’s been a year since one of the biggest shake-ups in the car insurance marketplace as the EU gender directive came into force.

On 21 December, 2012, insurers in the UK and the European Union had to stop using a person’s gender when they calculated premiums.

Now the dust has settled, the move to equalisation looks like being good news for the vast majority of drivers.

A study of over seven million insurance searches carried out on between November 2012 and November 2013 has found that nearly all age groups have seen a reduction in the amount they are being quoted.

The overall reduction in premiums for men and women is £146, with the average premium for anyone quoting for motor insurance with coming in at £820, as compared with £966 in November 2012.

In fact, according to the research, only women aged 17-20 have seen a rise in their premiums, and that was only £9 (£1,706 in November 2013 compared with £1,697 in November 2012). Men of the same age have seen the biggest drop in the prices quoted, with the average premium now coming in at £2,358, as compared with £3,293 - a reduction of £936.

Women overall have seen a drop in premiums of £59, so the average price of a quote for car insurance is now £719, compared to £778 in November 2012.  Women aged 45-49 have enjoyed the largest decrease, with a reduction of £138.

Scott Kelly, car insurance expert at, said: “No one was entirely sure how prices and products would be affected when the gender directive first came in last December but, with the exception of young female drivers, these reductions in premiums will be very welcome indeed.

“The car insurance market remains in flux with further developments ongoing and new initiatives due to impact on the market in the next few months. It will be particularly interesting to see what happens when the MyLicence (Insurance Industry Access to Driver Database or IIADD) programme comes into force next year and how - if at all - this step will affect premiums.”