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Gender directive one year on – who are the winners and losers in the car insurance equality revolution?

18 December 2013

One year on from the biggest shake up in the motor insurance market for years – the European Court of Justice ruling on gender equality – a new study by leading comparison site Gocompare.com reveals the winners and losers.

Since 21 December 2012 insurers in the UK have no longer been able to use gender when calculating premiums.  Now that the actuarial dust has settled, the move to equalisation looks like being good news for the vast majority of drivers, according to a study of over 7 million actual quotes carried out on Gocompare.com.

According to the new analysis, nearly all age groups have seen a reduction in the amount they are being quoted for car insurance over the last 12 months.

Gocompare.com figures, which are based on over 7 million real car insurance quotes carried out between 1st November 2012 and 30th November 2013, show that the overall reduction in premiums for men and women is £146, with the average premium for anyone quoting for motor insurance with Gocompare.com, coming in at £820, compared with £966 in November 2012.

In fact, according to the research, only women aged between 17 and 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, 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.

Men have seen a much larger overall drop of £205, with the average price in November 2013 being £890 compared to £1095 in November 2012.

However, the research revealed that men aged 65 and over have seen the smallest drop in prices with premiums dropping by only £26.

Age/Gender

2012

2013

Difference

Female

£778

£719

-£59

17-20

£1,697

£1,706

£9

21-24

£1,027

£958

-£69

25-29

£797

£739

-£58

30-34

£625

£579

-£45

35-39

£575

£524

-£51

40-44

£627

£527

-£99

45-49

£661

£523

-£138

50-54

£555

£456

-£99

55-59

£404

£361

-£43

60-64

£303

£277

-£26

65+

£292

£262

-£30

Male

£1,095

£890

-£205

17-20

£3,293

£2,358

-£936

21-24

£1,651

£1,342

-£309

25-29

£1,144

£975

-£169

30-34

£856

£766

-£89

35-39

£696

£636

-£60

40-44

£655

£569

-£86

45-49

£667

£570

-£96

50-54

£614

£517

-£97

55-59

£528

£447

-£82

60-64

£412

£378

-£34

65+

£336

£309

-£26

Overall

£966

£820

-£146



Gocompare.com’s head of motoring, Scott Kelly, said: “The gender directive certainly shook up the car insurance market this year. No one was entirely sure how prices and products would be affected when it first came in last December, but with the exception of young female drivers, these reductions in premiums will be very welcome indeed.

“But 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.”

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