The costs of car insurance for women has been rising, and it is about to experience a dramatic increase on December 21, 2012. In 2011, the European Union (EU) ruled that insurers will no longer be able to set their clients’ rates at a lower level based on the client’s gender. To keep up with news on changes to the insurance industry check a reliable source like insurers Lloyds.
Why women received lower rates than men
Typically, women have received lower rates because they are much less of a risk for insurers than men are. As women cause fewer collisions than men and they are not involved in as many crashes that they have not caused, women present a lower risk for insurance companies. They are less likely to need to make a claim with their insurers than men are, so they were not required to pay as much for their insurance premiums.
Insurance rates set to increase after December 21
Some insurers sold policies only to women and offered them highly advantageous rates that men could not receive. Other insurers offered insurance policies to men but favoured female clients and quoted them lower rates. Because of the EU ruling against setting insurance premiums based on gender, the insurance rates for women are expected to continue to rise and dramatically on December 21.
Even though the ruling has not gone into effect yet, some insurers have already changed their female clients’ rates, but the news is not all bad. Although some women have seen an increase in their premiums, others have experienced a decrease. However, because of the EU ruling, premiums are expected to increase for a lot of women. Women around age 25 who have seen their rates rise recently have been subjected to an over 20 percent increase, while those in their 40s have rates that are more than 40 percent higher.
The decrease in time that quotes are valid
Another reason rates will rise for women is because the length of time that a quote is valid has decreased and will continue to decline after December 21. When people received a quote from an insurer for car insurance in the past, they had three months to accept the rate. Currently, quotes may only be valid for one month, and some insurers have decided to honour a quote only until December 21.
Women whose insurance cover is up for renewal and have received low quotes to renew their policies may only have until December 21 to accept their new rate quotes. If they wait beyond that date, their rates may be subject to increase because of the EU ruling.
Women’s rates do not have to increase
Female clients may not necessarily receive a higher rate because insurers can still consider other factors when they set their clients’ rates. This means that women who are working in an occupation that is considered to be safer, for example, will be treated to lower insurance premiums. If they lock in lower rates before the December 21 date, they will be able to keep their rates low. However, if they do not act now, women’s rates will need to rise if only because of the EU ruling.