The AA which has conducted a review of motor insurance premiums which fall due for renewal on or after the December 21st deadline for gender neutral prices, reports that the new rates are currently in line with expectations.
As anticipated, premiums for young female drives are worst affected rising 24% on average across the eight different insurers that were featured in the AA’s review. The AA does however report a considerable variance in price increases among insurers for the age group ranging from 13% to 36% highlighting the importance of shopping around for the best value.
The AA also reports that female drivers will be more likely to switch provider when their insurance falls due for renewal this year than their male counterparts. In a recent AA survey on the contentious subject, 82% of women said they will put more effort into shopping around over the next year as a result of the ruling compared to 68% of males.
“This is new territory for insurance providers and they’re all anxious to retain your business so don’t be afraid to push them and see what they can do.” Says Conor Faughnan, Director of Consumer Affairs, AA Ireland. “There are also deals that you can do with your insurer such as getting a discount when you buy multiple products. Professional group schemes could also be an option so make sure to explore all your options to get the best deal.”
Based on the new gender neutral rates now in place for those whose policies fall due for renewal after December 21st, the AA reports that there have been premium increases for women across all age categories without exception. However for those aged 30 and over the increase is far less stark.
Premiums for women aged 30 for example are up by an average of 9% while those for women aged 70 have risen just 2%.
|Age||Average % increase of motor insurance premiums based on new gender neutral rates|
Again in line with expectation, the AA shares that male drivers under the age of 25 are seeing the most positive side effects in terms of their motor insurance premiums. Despite this however they share that the movement is far less dramatic than among young females.
On average based on their review the AA reports that premiums for 25 year old male drivers are down by 6%. Again the AA points out that there is a sizeable variance in price movements between insurers ranging from a decrease of 21% to an increase of 17%. This increase it reports however is an exception with the majority of insurers implementing reduced rates for young male drivers.
The inverse to female premiums, the AA reports that average premiums for male drivers have dropped across every age category.
|Age||Average % decrease of motor insurance premiums based on current rates|
Despite these substantial rate changes, the AA shares that the overall net effect across its own insurance book is a 2% increase which it believes is reasonably positive at this stage in the process. They also point out that there is likely to be some volatility in prices over the months to come as insurers strive to find the right balance.
To little surprise, more women than men have brandished the ruling as unfair according to recent AA poll results. Of a sample of over 7,000 motorists only 29% of women said they believe the ruling to be fair compared to 74% of males.
Note: The 8 insurers included in the AA’s review are as follows: ARB, Allianz, Aviva, Axa, Chartis, KennCo, RSA & Zurich.
Fig. 1 Sample quote comparisons generated via aaireland.ie to demonstrate the impact of the gender equalization ruling on prices:
|Age:||25 years||25 years||25 years|
|Vehicle:||05 Skoda Fabia, 1.2 liters||05 Skoda Fabia, 1.2 liters||05 Skoda Fabia, 1.2 liters|
|Cover:||Comprehensive with step back bonus protection||Comprehensive with step back bonus protection||Comprehensive with step back bonus protection|
|License:||Full Irish||Full Irish||Full Irish|
|Annual mileage:||10,000 km||10,000 km||10,000 km|
|Driving experience:||3 years claims free||3 years claims free||3 years claims free|
|Location||Dublin 3, kept in carport overnight||Dublin 3, kept in carport overnight||Dublin 3, kept in carport overnight|