How does telematics help with the Gender Directive?
From the 21st December 2012 insurers were no longer able to use gender as a risk factor when calculating the cost of motorists' premiums.
When you ask for a quote from a conventional car insurance policy provider, they calculate your premium by looking into the risk you may pose on the road.
To do this, they use national risk statistics and historic actuarial data, which might mean that you receive a much higher quote than you deserve due to being tarred with the same brush as other drivers.
As a result of the Gender Directive ruling, many young women, who have typically received lower cost quotes than young men due to being less likely to make an expensive insurance claim, may have suffered a substantial increase in the price of their cover because they have now been tarred by the same brush as male motorists.
However, if you are a safe, low mileage, young female motorist, telematics car insurance could help you save hundreds of pounds on your annual premium by enabling you to prove you are a low-risk road user.
insurethebox, the leading provider of telematics car insurance, states that a survey of 947 of its customers from June 2012 to August that same year, showed the average policyholder saved £574 on the cost of their cover. Young drivers could save even more.
If you would like to find out more about how telematics works, or more information about how this type of policy could help you save money, take a look at ‘The Covergirl Solution' and ‘Benefits of black box insurance' pages.
To read more about the gender equality ruling, please visit the ‘EU Gender Ruling' page.