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EU Gender Ruling: What it means for you

On the 21st December 2012 the EU Gender Ruling comes into force, preventing insurers from using gender as a factor when calculating the price of insurance. The result will be an increase in the cost of car insurance for women, and a small decrease for men.

To understand the reason for these price changes, it's important to know that at the moment, insurers tend to offer lower prices to women. This is because women are less likely to have a crash and make a claim when compared to men.

The statistics tell the story – British Insurance Brokers Association (BIBA) estimates that the average cost to an insurance company for a claim by an 18 year old male is £4,400. In contrast, young women aged 18 have a lower average claims cost of £2,700. This means young women are considered a lower risk and will receive cheaper quotes – but not for much longer.

However, once the EU Gender Ruling comes in to force, you could still see the rewards for driving well. BIBA estimates that by having a black box fitted, you could save up to 25% on your car insurance when compared to normal cover – and with ingenie, your price could change by up to a further 10% depending on how well you drive during your first year.

We've put together an infographic below, showing the impact of the new EU directive on young UK motorists.

Click to enlarge

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ingenie is a car insurance brand for young drivers aged 17-25. We fit a black box in your car to assess your driving style. We'll review your policy 3 times a year and those who drive well could receive a discount.

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