As we’ve already mentioned more than once here on the miDrive blog, young male drivers can be, statistically speaking at least, a danger on the road. Their increased accident risk and the high average cost of putting those accidents right has led to insurance for young men to cost up to 40% more than that of young women. However, from 21 December 2012, things are set to change.
From that date, insurers will no longer be allowed to take gender into account when calculating premiums. Rather than bringing down the cost of insurance for men, this move will drive up car insurance premiums for women. Young female drivers will be hit hardest, with increases of up to £2000 in their annual premiums. However, it’s not all rosy for older drivers; the average female motorist will see her insurance premium leap by £300.
One group who will remain unaffected by the change is drivers aged over 40. At that age, male and female drivers are considered to represent an equal level of risk.
Insurers are being guarded about the cost of their premiums after the ruling takes effect. When questioned by the Guardian, a spokesperson for Aviva didn’t say much but had good news for young male drivers, saying: “Young males are likely to see their premiums fall, and young female drivers are likely to see their motor premiums rise.”
What does this mean for me?
- Male drivers under 40 can expect to see a drop of up to 10% in the cost of their premiums.
- Female drivers under 40 will see a rise of up to 25% in their insurance costs.
- Drivers aged over 40 will be largely unaffected.
- Female drivers could save money by cancelling their cover and taking out a new policy before 21 December, the date on which the ruling takes affect.
- It may be worth looking at telematics or ‘pay-as-you-drive’ insurance to drive down your costs.
Image via State Farm.