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How does Gender Affect Your Insurance Premium?

Traditionally, the role of gender in car insurance has meant that women have had typically much lower premiums.  This also meant that for women working in the motor trade industry, they have been able to pay less on their insurance than their male counterparts.

First of all, why were women charged lower premiums before?

Insurance companies will compile research and data when calculating premiums, to assess how big of a risk you are likely to be. One of the ways they do this is by using statistics which often show results for a group; such as women, who quite often tend to show behaviours such as driving less, or driving less expensive cars, typically being involved in less accidents, or committing violations.

How has the gender ruling effected premiums?

But since the European Court of Justice’s gender ruling came into effect on December 21st, 2012, what has this meant for both sexes? Well, after the EU Gender Directive declared that insurers could no longer use age as a factor in insurance, women did see a reported 50% hike in their premiums.

How much have premiums evened out between men and women?

But most men are still paying more for their car and motor trade insurance, although the gap between insurance premiums is closing – with an already reported drop in the gap in average premiums from 14% to just 2%.

What can you do to minimise the costs of insurance as a man?

Unfortunately, it is still inevitable that you may have to face that you will still probably end up paying more than you’re your female counterparts for your insurance. However, it is worth remember that there is an exception to this, in that if you are considered a low risk, safe driver and there is a woman driver who has a poor driving history and is considered an unsafe driver, then they will more likely have a higher premium.

But overall, the best thing you can do as a man is try to keep a clean driving record and driving safely and responsibly. Then, this way, you are more likely to have a naturally lower insurance premium.

What can you to minimise the costs of insurance as a woman?

Many older and experienced female drivers should have been less affected by the ECJ’s ruling. However, for younger, less experienced female drivers or those with a poor driving record, they will have seen a difference in what they pay for car or motor insurance.

The best way to try and reduce your premiums if you fall into this group is to obviously try and always drive safely. But other things you can do that have an effect on your premium are choosing a more sensible car with better safety features – rather than the girl racer type – and also adding more safety features can be a good idea; also, if you can add an older, more experienced named driver onto the policy too, this is also likely to help.

Speak to our insurance experts at Insure Motor Trade

At Insure Motor Trade, we have over 20 years’ experience in the motor trade industry so we understand our customers’ needs and can advise on their individual circumstances. We have established long-term relationships with our partners which helps us to offer our customers the best deals on their premiums. So if you would like to discuss how your gender could be effecting your premium, contact one of our Motor Trade Insurance experts today.

June 10, 2014

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