With the emergence of the EU gender rule, the insurance cost for all drivers, including the 50% rise for young women, will be observed. This is Europe’s way of complying to the newly devised gender neutral rule, which means that insurance providers will not take gender into consideration in computing the payment and benefits that each one will receive.
The new policy started last December 21 and since then, people are feeling the effect of the change. Based on the study conducted by uSwitch.com, those female drivers who are in the 17-18 year old age bracket have observed the great increase in the payment. While the fee for the women increased, the payment for male drivers went down on an average of 12%.
Even before the EU rules was introduced, many women feared that they would see a double increase in their insurance charge. This new rule, however, did not affect those female drivers who are aged 36 to 40 years old because they experienced only 2% increase in their payments.
Personal finance professional from uSwitch.com, Michael Ossei, said that the 50% increase in the payment has a great effect on women who are still familiarising themselves on the road. He, added that they are hoping that the increase in the insurance payment won’t discourage those younger women from learning to drive.
Apart from its great effect on younger women, UE gender rules also affected the prices of the annuities. Based on the study of Moneyfacts, the EU’s banning of insurance providers who are giving different charges on men and women posted a great effect on women’s annuities. With this, policies which charge the women retirees a regular fee until the day of their death is reduced by 2.9 %, while for the men, it has dropped by 2.7%.