Susan works as editorial assistant and researcher on personal finance stories. She also writes on a number of breaking news stories, as well as offering great money saving tips to shopping-savvy consumers.
We're now just one month away from the implementation of the EU Gender Equality ruling being implemented for car insurance policies. The ruling comes into force on the 21st December 2012. From this date insurers cannot use gender as a measure of risk for setting insurance premiums.
The effect will be a sudden sharp increase in premiums for younger female drivers. There should also be a drop in premiums for young male drivers but this is anticipated to be more modest. According to research commissioned by the Association of British Insurers, women aged between 17 and 25 will see premiums increase by an average of 25%. Men should see a corresponding drop but only around 10%.
The effect will be greatest on the youngest drivers who have not had the chance to build up a no claims discount. The worst increases will hit female drivers under 21 years old. Insurance for a 17 year old male can be 70-100% more expensive than for a female so increases for a 17 year old female could easily be 50%.
We're seeing a surge of enquiries from female drivers looking to take advantage of the cheaper premiums before the 21st December. It's not just those whose renewal is due anyway that can benefit. Young female drivers with renewal dates after the deadline could still save by cancelling their existing policy and renewing early despite potential cancellation fees and not being credited with a year's no claims discount on the policy they cancel.
Young female drivers considering insuring now to avoid the increases for as long as possible should act soon and before the deadline.