2013 will see the ascent of pay-as-you-drive car insurance thanks to the EU Gender Directive - with the countdown started to what could well be the maddest March in motor insurance history.
Pay-as-you-drive telematics insurance pioneer Coverbox says there's a perfect storm on the horizon - and insurers have to start preparing now, or see massive volumes of premiums simply disappearing to more switched-on competitors.
"I was a bit puzzled as to the fuss around December 21 when the EU Gender Directive came into force, because there seemed to be a belief there was going to be a massive overnight rebellion and protest by women drivers," said Johan van der Merwe, executive chairman of www.coverbox.co.uk.
"But insurance renewal is largely associated with car buying peaks - and nobody buys cars at Christmas. The mayhem is going to kick off in March 2013, when the perfect storm arrives: peak annual car sales - and hence insurance renewal, the end of 'free insurance for a year' agreements, and a flooding of the market of the sorts of cars many younger women buy at bargain prices - small hatchbacks and convertibles - will all land at the same time.
"Savvy women - who generally take more time researching car insurance come renewal - will simply not stand for suddenly increased premiums in return for largely safer driving records than men of the same age or status.
"Women are also nothing like as concerned about the 'Big Brother' misnomer that men attach to pay-as-you-drive telematics insurance, which basically monitors vehicle usage, because woman tend to drive more carefully - they don't try to hide their driving style or vehicle usage as some of their male peers tend to.
"What women are going to discover is that they can pull back some, and in some cases all of the gender directive inspired increase in insurance premium by switching to pay-as-you-drive. But the timing of the perfect storm means that there's going to be a lot of women discovering pay-as-you-drive at the same time. As insurance is not optional, and their likely standard insurance premium will be more expensive, they're going to move to telematics products, and probably move in big numbers.
"The issue, however, is that many insurers are going to be stuck without the option of a pay-as-you-drive or telematics product. There are basic telematics products out there, but the industry is going to rocket forward this year. The countdown has started."
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