With one of the biggest shake ups ever in the way motor insurance premiums are calculated due to take place next month, a survey reveals 26% of motorists are in the dark about the change.
On December 21st 2012 insurance firms in the UK will no longer be allowed to take gender into account when setting car insurance premiums. It is a radical change brought about by European legislation and industry experts believe the change could see some young female drivers paying up to £500 a year more for cover. The amazing difference in price is explained by the fact that statistics show female drivers are less likely to be involved in accidents, less likely to get penalty points on their licence and less likely to make an insurance claim. The biggest difference in statistics applies to young drivers with the figures showing young females are much safer drivers than young males.
Because of the EU rules insurance companies will no longer be allowed to discriminate between young females and young males so the likely outcome is that young males will get a reduction in premiums while females see theirs go up. The survey carried out by the AA showed that just over a quarter of drivers interviewed were completely unaware of the imminent changes with the figure rising to 29% amongst female drivers. Of those who were aware of the gender ruling four out of ten admitted they had no idea when the rules would be introduced, with a significant number (23%) believing the change would come about some time in 2013.
Currently, statistics show that the first motor insurance policy taken out by a female aged between 17-22 averages out to £2,125, the same age group in males attracts an average premium of £3,002.