Confused.com Reveals Young Female Drivers to be Hit With Car Insurance IncreasesBy Confused.com, PRNE
Thursday, February 24, 2011
CARDIFF, Wales, February 25, 2011 - Confused.com is urging young female drivers to shop around for new motor
insurance cover ahead of the EU Gender Directive ruling on 1 March 2011. The
ruling, which will decide whether or not it is legal for insurers to charge
different premiums based on gender, will lead to massive change for motor
insurance providers if pushed through, and is likely to result in further
price rises for young female drivers as they absorb the difference between
their current rates and those of their male counterparts.
Chief executive of Confused.com, Kevin Chidwick, said: "If the current
ruling is overturned, insurance providers will no longer be able to use
gender as a rating factor in setting premium prices. It is a fact that motor
insurance claims made by young male drivers are significantly more expensive
because they are more likely to result in death and serious injury, thus
young men are currently subject to higher premiums. This will no longer stand
up if the ruling is overturned. The result is likely to be a price rise for
female drivers as they subsidise their male counterparts, who are responsible
for more accidents, although it's unlikely that male premiums will fall, at
least in the short term."
Because insurers will no longer be able to take gender into account,
their overall approach to setting premium prices is likely to become more
cautious as the effect of the change beds in. Based on its own car insurance
index, Confused.com recently reported a 38.2% rise in the average premium
over the last 12 months and it's likely that drivers of all ages will be hit
with further rises if the change is agreed.
In particular, young female drivers are likely to suffer. Women drivers
aged 17-20 saw a 37.5% increase in premium price during 2010, making the
average policy for this group GBP1,694. Despite being GBP999 more than the
average female premium across all age groups, it's over GBP1,200 less than
males the same age - men aged 17-20 pay on average GBP2,976 for an annual
fully comprehensive premium. As age increases the differential between male
and female prices decreases, meaning it will be younger drivers who can least
afford it that suffer the most.
As Confused.com recently explained to the transport select committee
enquiry, further rises in motor insurance (www.confused.com/) for
young drivers would have implications other than just those on their
"It's possible that more young people will decide to drive without
insurance if their premiums continue to rise," continued Kevin. "Un-insurance
is typically most prevalent in young drivers, with drivers under 26 being 11
times more likely to have a conviction for driving without insurance from the
last five years compared to the over 60 age group.
"Although the ruling could go either way, if the current rules are
overturned prices could change overnight, so anyone looking to take out or
renew a premium should shop around and secure a deal without delay. It will
be a real blow for the industry if consumers suffer further price rises to
cover the costs of young men who statistically cause more accidents and make
higher value claims."
Confused.com is one of the UK's biggest and most popular price comparison
services. Launched in 2002, it generates over two million quotes per month.
Initially providing quotes for car insurance, it has expanded its range of
comparison products over the last couple of years to include motorbike
insurance (www.confused.com/motorbike-insurance), travel insurance,
breakdown cover (www.confused.com/breakdown-cover) and energy, as well
as financial services products including credit cards, loans, mortgages and
PR contact: Zoe Stevens PR Manager Friary House Greyfriars Road Cardiff CF10 3AE +44(0)2920-494393
Zoe Stevens, PR Manager, Friary House, Greyfriars Road, Cardiff, CF10 3AE, +44(0)2920-494393
Tags: Cardiff, Confused.com, February 25, United Kingdom, wales