Women are safer drivers, they tell the Celt

The ruling by the European Court of Justice yesterday, Tuesday, that the Irish insurance industry can no longer use gender as a risk factor when calculating premiums may be good news for the male population, but the fair sex are none too happy about it. "If men were smarter they would get cheaper insurance," one Cavan female driver told The Anglo-Celt. "Safe driving should be rewarded and it's proven that women are safer drivers," another said, while a third added, "if women drivers are cheaper to insure then their insurance should be cheaper". Female drivers have found it easier to get insurance from Irish companies because they are more careful drivers. It is acknowledged that male drivers, particularly young men, drive faster and crash their cars more often than their female counter parts. Insurance premiums are calculated on that basis. However, Tuesday's ruling by the European Court prohibits insurance companies from differentiating between female and male drivers when it comes to calculating premiums. John Farrell, the AA's director of insurance, says that the use of gender in calculating insurance risk has been a fundamental principle of Ireland's risk-based motor insurance structure for decades. However, the European Court had concluded that Ireland's opt-out was not compatible with the principles of equality guaranteed in European legislation. "There is a fundamental difference between equality and fairness. The calculation of car insurance premiums based on risk is by definition fair but is incompatible with gender equality," he says. Mr Farrell regards it as a bad day not just for Ireland's female drivers but for all motorists. "We will see premiums rise across the board as insurers struggle to find new ways of pricing accurately based on risk. In the long run insurers will be compelled to systematically overcharge all women, especially young women, in order to subsidise the under charging of young men," he said. Currently young women are paying insurance premiums half the price charged to men. In the years ahead the premiums of young female drivers will increase while those for young men are likely to fall a little. The new ruling comes into affect in December 2012, which gives the industry time to revise its rating structure. According to the AA, this should minimise the risk of sharp premium increases, especially for young women. It is generally accepted that female drivers are less of a risk and this is one piece of equality law that is generally accepted as unfair. It now remains to be seen how the insurance companies can operate within the constraints of this new ruling.