Car insurance for women

Like any consumer, women looking for car insurance should shop around when looking for a good deal. At CanCanCover.com you can compare prices for car insurance for women from our range of leading specialist insurance partners.

Evidence from the insurance industry has historically indicated that women drivers represent a better risk in terms of lower claims frequency and cost and women therefore have enjoyed lower car insurance prices compared to their male counterparts. The difference between young male and female drivers is even more marked with studies showing that a male driver under 21 is twice as likely to have an accident compared to a woman under 21.

However a recent European court of justice ruling will prohibit the use of gender in determining car insurance premiums. From 21 December 2012, insurance companies will no longer be allowed to take gender into account when calculating car insurance premiums for women.

This ruling, whilst potentially beneficial for women in relation to other financials products such as life insurance and annuities, may not be good news in terms of car insurance premiums for women.

Research from the ABI suggests that equalising premiums would mean that car insurance prices for women under 25 could increase by up to 25% whilst young male drivers could see their premiums reduce by up to 10%.

This is set against a backdrop of rising prices and another cost headache for those searching for car insurance for women drivers. Research from CanCanCover.com estimates 52% of women car drivers have seen their insurance premium increase in the last twelve months. More women drivers may be forced to shop around for better prices compared to their existing insurance provider.

There are concerns from some that the ruling could lead to higher levels of insurance fraud and uninsured driving as motorists struggle to meet the growing cost of keeping a car on the road.

Insurers are likely to try and move closer to individual pricing to in an effort to reflect the most accurate and fair premium for the risk presented to them regardless of gender.