EU ‘gender neutral’ rule will result in more costly car insurance for some

New EU rules ban insurers from setting prices based on gender; women drivers may need to pay £300 more for their car insurance

11:38 21 December 2012

Women drivers are the ones who will be most affected when new UE “gender neutral” rules kick in. The new European rules ban insurers from assessing one’s insurance premium based on gender. Currently, young women pay less compared to male drivers, as they are considered by some to be less dangerous on the road.

On average, 17 to 25-year-old female drivers are currently paying £1,247 for car insurance; much lower compared to £2,004 being paid by men from the same age group. However, new EU rules puts an end to this and women drivers can say goodbye to many good deals once the new rule takes effect.

Based on the comparison made by website Confused.com, premiums being paid by female drivers may increase by up to 24per cent, or as much as £3,000 per year. On the other hand, women drivers who are aged 31 to 35 will most likely see a 10per cent increase.

Men will also be affected with the new rule as it will apply to all insurance products.

Men who are approaching retirement will be affected as the value of annuities will drop.

Currently, men are getting higher pension payouts because based on statistics, they tend to die at a younger age compared to their female counterparts. According to Office for National Statistics, men usually die at 85-years-old, while women can live untill they reach 89 years old.