Young Female Drivers Brace an Increase in Motor Insurance Premium Prices!
December 1, 2012

It has previously been known that young female drivers have been quoted less expensive insurance premiums than young male drivers, but this is about to change. The ban on the difference of prices between the two sexes comes into place on the 21st December 2012 after a European ruling found that a discrimination of gender within insurance was illegal.

It has been reported by Insurance brokers that rises of up to 40% will take place this month compared to last month. The new European ruling ensures that women will also pay more for other insurance types such as life assurance.

Insurers have previously used gender as a factor in the calculation process of motor insurance premiums for decades. In the next few days, it is believed that the majority of motor insurers will reveal their price changes as they begin to release renewal letters to existing customers revealing the new premium prices.

One Example of the new price increase is, Hazel Bond a 19 year-old who has been researching new premium quotes and receiving increases of up to £500 difference for her Renault Clio.

The British Insurance Brokers' Association, BIBA, are tracking certain cases of quotes and premium prices to observe the initial impact of the court ruling. Graeme Trudgill a BIBA representative stated “we're beginning to see the first changes coming through and young women are being affected particularly”.

Other research carried out have seen a significant decrease in the insurance prices for young males to balance out the new European court ruling. Men have previously had much higher premiums due to the increased likelihood of being involved in an accident with the department of transport stating that male motorists under the age of 25 were involved in 24,000 more incidents than women in 2011.

In contrast, the new ruling is not having an impact on both female and male drivers above the age of 25 with prices not varying at all. As well as motor insurance, both life insurance and annuities are affected with the new court ruling. One type of insurance not affected though is Car Gap Insurance, with independent firms not using the difference in Gender, Age or Location is a factor in calculating their premium prices.


No Comments

Add a commment
*your email will not be displayed.