Changes in Car Insurance for Women

What does the gender directive mean for you?

The Gender Directive regarding car insurance became law on 21st December 2012. The legislation means that insurance providers can no longer determine motor insurance pricing by using statistics based on gender and as a result, men and women are being rated in the same way.

The Treasury has estimated that premiums for women will be affected in the following way:

  • Aged under 26 years Average premium could increase by 24% or £326
  • Aged 26-30 years Premiums could rise by 18% or £162
  • Aged 31-35 years Expect an average rise of 10% or £90
  • Aged 36-40 years Premiums are expected to increase by 3% or £21 on average
  • Aged 41-45 years Expected drop of up to1% or £7
  • Aged 46 and above Negligible impact

Please note that all changes are subject to personal information including address, driving experience, car make and model and occupation.

As a result of the directive, new motor insurance products are becoming prolific in the market. These offer women – and younger women drivers in particular – a better deal. One such solution is telematics or 'black box' insurance, which assesses the individual's driving data to keep costs in line with how careful her driving is.

A black box is fitted to the vehicle to record behaviour, speed and braking data as well as the time of day the car is being driven. This information is then used to calculate the premium.

Alternatives to the black box option include taking a Pass Plus course, which educates motorists on safe driving techniques, adding a named driver with more experience and choosing a car from a lower insurance group to cut costs.