Trying to find an affordable car insurance for young driver policy can be a challenge. In the second quarter of 2012, according to the AA British Insurance Premium Index, men aged between 17 and 22 were charged an average price of £2,792 for their comprehensive cover. However, women of the same age group received an average quote of £1,995.
These figures may have left some motorists asking, ‘why do women seemingly receive cheaper young drivers insurance than men?’
The answer boils down to risk. Insurers have access to a wide array of statistics which show that women are generally more likely to be involved in traffic accidents than men, but these collisions are typically less severe and do not cause as much damage.
As a result, female drivers have been more likely to receive cheaper vehicle cover than their male counterparts. However, all this changed with the arrival of the EU Gender Directive.
What is the directive?
When implemented in 2004, the gender directive made it illegal for European countries to take a person’s sex into account when supplying goods and services. However, insurers could opt-out of the directive by providing statistical evidence showing that men and women presented different risks.
As male drivers are statistically more likely to be involved in serious traffic accidents than women, insurers could use a person’s gender when calculating the price of their policy.
However, in March 2011, the European Court of Justice made this practice illegal. As a result, insurance providers are now unable to take gender into account when assessing an applicant’s risk.
How might it affect me?
In order to make the cost of premiums more equal, many female drivers will have to pay more for their vehicle cover. An analysis from the Treasury in 2012 estimated that women could see the price of their car insurance increase by 24%. In contrast, men might see a 9% reduction.
What can I do?
Women could now see a substantial increase in the price of their vehicle cover. However, they might be able to save money by taking out a policy with insurethebox.
Our policies are based on fact, not assumptions. We know most individuals are safe drivers – and believe they should be given a chance to prove it.
Once a road user has one of our telematics devices fitted to their vehicle, we can find out if they drive safely and provide them with tips on how to improve certain motoring habits.
By following our advice and becoming safer behind the wheel, he or she could receive a cheaper car insurance quote at renewal and Bonus Miles every month.
To find out more about our car insurance for young driver policies, please click here for more information.