Young men see biggest price reductions in Q4 2013
It’s been more than a year since one of the biggest shake-ups in the car insurance marketplace. The EU Gender Directive came into force in December 2012, meaning that insurers are no longer able to use gender as a factor when pricing insurance.
Largely as a result of the Gender Directive, young men have been the main beneficiaries of comprehensive price reductions over 2013, with 17-20 year olds seeing their premiums fall by 23%. Young women, who initially suffered from the introduction of gender-neutral pricing, have also benefitted. Females aged 21-25 saw the biggest year-on-year fall of 14%, bringing their average insurance premium down to £936.
Males in certain age groups buck the trend, seeing overall premiums rise
The price decreases seem to be slowly diminishing for some men, with selective age groups seeing price rises this quarter. Men as a group received a small increase in average premiums of 0.9% in the final quarter, the first quarterly increase for two years.
The gender divide still exists for car insurance
Despite the EU Gender Directive, men are still paying more than their female counterparts. Women enjoyed a steeper drop in premiums last quarter. The difference now stands at £61 (men £671 vs women £610), an increase in the price difference of £31 compared with Q3 2013 (men £665 vs women £635).
Women enjoyed a 13.6% decrease in premiums over the same period. This could be an effect of gender-neutral pricing bedding down for the last 12 months. Also insurers are becoming more selective in their pricing strategies.