Women elect for cheaper car insurance…rather than equality

After the European Commission dropped a proposal aimed at ending sex discrimination, women will not have to pay more for car insurance.

Under the EC’s gender directive, insurance firms would have banned from offering cheaper premiums to women on the basis that they were statistically safer drivers. As an alternative, insurance firms will be allowed to take gender into account when setting premiums, after a deal had been agreed.

UK insurance firms offer different premiums for cover based on gender, and due to the fact men are involved in 85 per cent of serious traffic offences, women generally pay less.

The new directive’s aim is to ensure equal treatment covering a range of goods and services such as banking, insurance, pensions and housing.

This will ensure, for example, that pregnant women are not disadvantaged when applying for a mortgage because they are expecting, and that they can also apply for credit, such as credit cards and personal loans, without requiring their husbands to act as guarantors.

The directive also aims to prevent discrimination against part-time workers when applying for credit.

Jacqui Smith, the deputy minister for women and equality, said, “The rights we have enjoyed for nearly thirty years will now be enshrined in this directive for the benefit of all Europeans.”

She added, “It’s good news for UK insurance, but this directive covers much more than that.”

A report by a Lords European Union committee opposed the proposal on insurance last year, saying it would wrong to penalise younger female drivers for the sake of removing sex discrimination, when young male drivers have far worse accident claims and conviction records.

Diamond insurance, a firm which caters specifically for female drivers, said “The implications of this directive meant the cost of women’s car insurance was set to rise by 20-30 per cent”

“More than 7,000 customers contacted us with messages of support for opposing this directive. We are delighted that a change in the wording of the EU law is planned.”

Insurance quotes for male and female drivers can vary greatly. A policy from Direct Line insurance for example, to insure a Ford Fiesta in Edinburgh for a 17-year-old male student who had recently passed his test would cost £2,154. For a woman the same policy with Direct Line would cost £1,340- a saving of £814.

The variation in quotes is due to women being seen as less of a risk. With male drivers accounting for more than half of the UK’s motoring convictions, it is easy to see why this view is held.