CHESTER, England, March 11, 2013 /PRNewswire/ --
Young female motorists have witnessed their car insurance premiums soar by 14.9 per cent as a result of the European Court of Justice (ECJ) ruling on gender pricing which came into force in December, according to MoneySupermarket.*
Analysis of over 17 million quotes on the comparison site since the introduction of the ECJ ruling, showed a rise in premiums of £156 (15 per cent) on average since December for female drivers aged 17-19 years old. However, price decreases prior to the ruling meant that overall premiums for young females increased by £101 (9.2 per cent) on average compared to the beginning of last year.
While bad news for young female drivers, male drivers in the same group have benefited greatly from the ruling. Since December, premiums have fallen by an average of £211 (12.9 per cent). The analysis also highlighted a dramatic fall year-on-year of £404 or 22 per cent in the cost of premiums for young males, when including decreases prior to the ruling. The average premium for young female drivers is now £1,200 while male drivers still pay far more than females, with premiums at £1,429.
Impact of the ECJ ruling on 17-19 year olds Gender ECJ Effect Net Effect** Men -12.9% -22.0% Women +14.9% +9.2%
The MoneySupermarket analysis shows the ECJ ruling had no impact when considering other age groups as a whole, and prices have fallen over the last year. The average annual price quoted is now £439.97 - a fall of £43 since the ruling came into effect.
Peter Harrison, insurance expert atMoneySupermarket said: "The introduction of the gender rules was predicted by many to cause 'Carmageddon' with drivers, especially females, being forced off the roads as a result. As our research shows, female drivers now have to become accustomed to a sharp rise in prices whilst their male counterparts revel in a fall in premiums. However, male drivers still pay more for their premiums than their female counterparts, but the difference in pricing is closing significantly.
"While younger female drivers are experiencing the biggest impact of the ECJ ruling on their premiums, there are still savings to be made by shopping around. We are still seeing prices fluctuate on a daily basis so it pays to spend time researching for the best price possible. The message is simple, if you have seen an increase in premiums from your provider, it is important not to accept the renewal quote from your existing insurer. Instead shop around and compare premiums. Prices do vary by the day so be savvy and snap up a deal you are happy with."
Notes to editors:
*Analysis carried out on a 17.1 million quotes between 1st December and 24th February 2013.
** Net effect is for those who compare insurance annually:
MoneySupermarket.com compares (at 30th Jan 2013)
We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.
By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.
Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.
Our customer commitment
For further information, please contact:
©2012 PR Newswire. All Rights Reserved.