European ruling hugely affects young persons car insurance premiums
A European ruling came into affect in December 2012 which makes car insurance companies charge the same premiums for male and female drivers. This will have a huge impact on current car insurance premiums for woman and male drivers, especially young drivers newly qualified without any no claims discount. Currently each insurance company can choose how much they charge, taking into account the risk each insurer presents whilst trying to ensure a reasonable profit is made, which mainly dictates the insurance premiums charged for anything!
The average insurance premium is currently around £1700 for young newly qualified female drivers and a staggering £3700 for young male drivers first insurance premiums. The new rulings coming into effect in December 2012 will undoubtedly raise the premiums of young female drivers to match that of young male drivers and only time will tell whether the insurance companies are greedy and try raising female premiums to match that of their male counterparts without lowering young male drivers premiums. The likelihood is that insurance premiums for male drivers drop due to huge competition in the car insurance business, however it wouldn’t be a shock if insurance companies benefit from the new ruling and fail to average out premiums – £1700 + £3400 = £5100 leaving an average of £2550. By December 2012 the Learners Guide predicts an average insurance premium for both male and female drivers - newly qualified without time to take into account no claims discount, being just under £3000.
As car insurance for newly qualified drivers is getting a little bit silly, please click this link to read the Learners Guide’s article on how to get cheaper car insurance.