End of Cheaper Car Insurance for Women Drivers
Posted by Simon Maddocks - 02/03/11 at 08:03 amOnce again the mighty Brussels (we know better) powers that be have stamped their fist.
This time it’s female UK motorists that have been hit, seems that in an industry based on risk cannot give safer drivers ( in theory) cheaper car insurance premuims.
So all the guys are thinking great, cheaper car insurance for me. Well not quite, young men looking to get really cheap car insuraance after the ruling are going to be disapointed, predictions are 10% less, personally once you add in inflation and other costs incurred come december this year when the ruling comes in to force the price you paid this year will probabbly be the same next.
We did a quick quote as an example on a Ford KA 1.3 10 year old as a first car for an 18 year old girl, quotes came back at around £1100 for first year after passing driving test. Next we did the same details exactly, car, address, usuage, SDP, TPFT, etc, only thing we swopped was gender and first name. Cheapest car insurance quote we got back was £4000.
Now that’s a heck of a difference in price but even if you add 25% ( Brussels forecast increase for ladies) to the girls price and deduct 10% from the guys they are still miles apart.
So girls, whilst I understand an increase in your car insurance will hurt, it’s still better than being a guy.
“The Association of British Insurers estimates that women drivers under 26 face a 25 per cent rise in car insurance rates, with a 10 per cent drop in rates for men within the same age group.
This ruling will come into effect in December 21 of next year.
Currently, the standard practice across Europe is to base insurance rates on statistics about differing life expectancies or road accident records of the sexes.
A woman driver under the age of 22 pays around £1,682 in car insurance while a young man is charged an average of £2,750.
This is because men under 22 are ten times more likely to have a serious crash, 25 times more likely to commit a driving offence and twice as likely to make an insurance claim.
The risk difference between the sexes becomes less pronounced as both get older.
But the ruling means that in future gender cannot be taken into account when accounting premiums.
That means age will become the overriding factor when calculating insurance. Hence young women can expect a rate hike of up to 25 per cent.”*
*Source Dailymail online