Gender Divide in Car Insurance Pricing for Young Women

The latest Car Insurance Price Index from a UK price comparison insurer reveals there is still a gender divide in premiums when it comes to the younger generation, with young women bearing the brunt of price increases.

Overall, however, comprehensive car insurance has fallen by a massive 24% since its peak in the second quarter of 2011. This is welcome news to motorists, especially during a period when inflation has risen by 6%.

However the good news is dampened by evidence that young female drivers have been adversely affected, with the average cost of comprehensive insurance for a 17-20 year old woman rising by 9.1% in the UK in the last year.

To give this some perspective, premiums for women in this age group now average 1,862. Male motorists in the same age group, whilst enjoying a fall in premiums of 29.25% in the last 12 months, still pay more, however: 2,345 (3rd Quarter, 2013).

Women have traditionally paid lower premiums because of their lower accident statistics; however EU gender directive legislation, which took effect in December 2012, now prohibits companies taking gender into account when quoting for insurance.

This has resulted in a steadily reducing price gap between men and women's car insurance.

Looking at the overall average price difference between men and women, with no particular age group in mind, the figure now stands at a negligible 30. This is a big difference compared with the same time in 2012, when men were paying 112 more than women.

It's a varied picture for women drivers, depending on age and location. Differences in the regional picture around the UK have also impacted on the cost of women's insurance. Young women in Northern Ireland have been worst hit, experiencing rises of 14.8% (an average cost of insurance is 2,156). Young women drivers in central and North Wales have experienced price hikes of 13.6% and in the south west, young women have been hit by prices rises of around 12.1%.

The good news seems to be that despite the gender divide and regional influences, the cost of car insurance is considerably cheaper in 2013 than it was two years ago. Figures show that motorists (of both sexes) have seen the average cost of premiums fall by 191 since 2011.

Motorists are urged to take advantage of falling prices and shop around for their car insurance at renewal.