Don’t do nothing about your car insurance and expect nothing to happen as a result of the European Gender Directive in December… Sure as eggs are eggs, motor insurance prices are going up for most women drivers, young females in particular, very soon. And there are several things you can do to reduce the pain…
Strictly speaking FOXY isn’t allowed to give insurance buying advice. But whilst we don’t sell insurance, we do share female feedback/deals within the Club, we do put females first and we are independent and FOXY-minded… so we do have some useful ‘tips’ for women about saving money here.
What Gender Ruling?
In a recent Go Compare survey a staggering 76% said they either hadn’t heard about any Gender ruling or didn’t understand it. So if that includes you, we’re talking about an EU ruling in December to prevent UK insurers from using their gender risk statistics to base insurance premiums on.
This means that from December 21 women drivers (and men with female named drivers perhaps?) will be expected to
+ pay more for car insurance (mostly for females U43)
+ subsidise accidents they didn’t cause
+ contribute to insurer profits (that nobody seems to be addressing).
What will happen as a result?
The truth is that nobody knows what’s going to happen as a result of the Gender Ruling. Too few insurers have put their heads above the parapet yet because they’re waiting to see what the competition is doing.
LV= was the first to say they’ll move to gender neutral pricing from 1 December and Sheilas Wheels is following suit on 18 December for new business.
Direct Line says ‘do nothing yet’, which we don’t agree with but we do agree with Aviva which suggests ‘younger female motorists will almost certainly save money if they renew their car insurance before 21 December.’
NB: Most insurers are reducing the period a quote remains valid from a typical 30 days so that any quote prior to 21 December is not valid afterwards.
Who is affected?
Young women under 30 years should attempt to renew their insurance before 21 December. This age group is affected most and seems likely to face big surcharges because (and this is why this is so ludicrous) this is the age group where their male counterparts have the most (serious and expensive) accidents.
It is estimated that young females may have to pay up to c25% more here after December 2012.
Women drivers between 30 to 45 years may be affected too (but less) so we suggest they do the same. Of course there are a lot of other risk factors to be considered.
NB: Women over 45 are unlikely to be affected much at all we’re told as the risk profile changes with age. In fact, older women have more accidents than older men it appears and whilst ours are usually minor ones borne out of distraction or a lack of concentration we’ve been paying our way for insurance here in terms of higher premiums and excesses than many men.
What about black box insurance policies?
Choose an insurance policy with a black box and you have just added £80 to £100 to your insurance premium because this is the approximate cost of the installation and the technology. So regardless of the statistics the insurers know about young women already, you will still be expected to PROVE you are the lesser risk gender by driving well enough to save that £100 premium; before you break even that is.
And not all black box policies are the same. Some insurance companies will quote you a black box price that requires you to promise you won’t drive at night, speed or drive dangerously. If you do any of this at any stage, this will be spotted and chances are your premium will rise; you have no control over this.
Other insurers will charge you a high-ish black box premium from the word go (ie to include the installation/black box rental/driving assessment) and then incentivise you with uncertain discounts after a period of several months, assuming you drive according to their requirements. Obviously it’s up to you to judge whether this appeals, but it makes it hard to budget when any saving is unknown; once again you have little control over this in Year One.
NB: FOXY is in favour of all initiatives that might save young drivers lives, bearing in mind that accident statistics confirm it’s young male drivers who need them most. But it is surely insensitive of insurers to hit young females twice here with the cost of unnecessary black boxes to be paid for at the very time the EU (and a weak UK Government it seems) is allowing women to be targeted for swingeing increases in motor insurance premiums because of their gender.
And everyone should be aware that some black box policies allow parental controls; so parents can see where you have been, when and what speed you were doing.
NB: Terms apply in all cases…
FOXY tips for young women drivers
1 Try to renew before 21 December 2012
Speak to your existing insurer about this before your policy is up for renewal. If you can renew at the same rate, renew for a further 12 months to give you peace of mind and the time to see where the best deals are next year.
2 If your existing insurer won’t play ball…
Find out what the cancellation costs will be (usually between £25 and £50) and shop around at a comparison website.
Remember that your premium might increase by up to 25% otherwise…
3 Look at locking in to a 3 year deal…
A deal you can lock in to for 3 years is being offered by Andrew Yule Insurance – they’re a family run insurance broker in Glasgow. From now until 20 December they’re offering a fixed price for 3 years based on current young women’s prices ie 17-24 year olds.
It’s a simple deal – you buy a 3 year insurance policy now, agreeing to pay the premium in 3 yearly payments by direct debit. Year One now, Year Two in 12 months time and Year Three 12 months later. The bit we like is that if a better deal is found when the 2nd/3rd payments are due, you can just walk away – there’s no tie-in to renew the policy on the 2nd or 3rd year.
As you might expect there are some underwriting terms and conditions but to find out more you’d be best to contact Julie at Andrew Yule Insurance on 0141 634 6827.
We make no commission from this mention and we’d welcome female feedback please.
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