New data from uSwitch has shown that one month on from the EU gender directive banning insurers from discriminating on gender, 17 and 18 year old female drivers have seen their car insurance premiums jump by a shocking 50%.
The data, based on quotes for over 20,000 drivers before and after 20 December 2012, shows that premiums for female drivers have so far risen by an average of 8% across the board, less than the industry prediction of 25%.
However, young women are witnessing rises twice as high as this prediction. Average premiums for 17 and 18 year old female drivers have jumped from £1,307 to a staggering £1,965 – a 50% increase. 19 to 21 year olds have also seen a jump of 13%, taking their average premium to £1,098.
Good news for male drivers
As expected, the ruling has come down on the side of men. Overall premiums for male drivers have dropped by 6%, with 19 to 21 year olds seeing one of the biggest decreases of 12% decrease.
Interestingly, male drivers over the age of 71 have also seen their premiums drop by 12%. All in all, the gender gap has significantly narrowed, from 14% to 2%, showing that insurers have jumped on the new legislation.
However, across every age group except the over 71’s, men still pay more; the average premium for men is £619, compared with £529 for women.
Newly qualified drivers hit hardest
Michael Ossei, uSwitch personal finance expert, commented: “Young women who’ve just passed their test may well wish that Britain had never stepped foot inside the EU – a 50% rise in premiums could have a devastating effect on newly qualified women trying to get on the road.
“But there’s not quite cause for young men to jump up and down in celebration. Despite the shock hike in female premiums, 17 and 18 year old males still pay the most for their car insurance.
It’s our hope that these relentlessly high premiums don’t discourage young people from learning to drive.
Important as ever to shop around
Ossei continues: “The gender gap may be narrowing but it’s as important as ever to shop around to find the best deal at renewal time – with over one hundred providers on the market, there is a big difference between the cheapest and the most expensive quote.
“A little bit of research will go a long way towards limiting the financial impact of this judgement and not letting cost force drivers off the road.”