You are here: Home - Insurance - News -

Insurance premiums up 50% for young women drivers

0
Written by:
21/01/2013
Young female drivers are paying the price for equality, according to new research.

One month on from the EU gender directive, which ruled that car insurance premiums can no longer be differentiated by gender, 17 and 18 year old female drivers have seen premiums jump by a staggering 50%.

There is good news for men, however. Premiums for male drivers have dropped by 12% since the ruling was introduced, according to data from uSwitch.com, the independent price comparison and switching service.

The data, based on quotes of over 20,000 drivers before and after the rules were introduced on 21 December, shows that car insurance premiums for female drivers have so far risen by an average of 8% across the board, less than the industry prediction of 25%.

But young women are witnessing rises that are twice as high as this prediction. Average premiums for 17 and 18 year old female drivers have gone from £1,307 to £1,965 – a 50% increase. 19 to 21 year olds have also seen a jump of 13%, taking their average premium to £1,098.

Overall premiums for male drivers have dropped by 6%, with 19 to 21 year olds seeing one of the biggest decreases of 12%. Male drivers over the age of 71 have also seen their premiums drop by 12%.

All in all, the gender gap has significantly narrowed, from 14% to 2%, showing that insurers have jumped on the new legislation. However, across every age group except the over 71s, men still pay more; the average premium for men is £619, compared to £529 for women.

Michael Ossei, personal finance expert at uSwitch.com, says: “There’s not quite cause for young men to jump up and down in celebration. Despite the shock hike in female premiums, 17 and 18 year old men still pay the most for their car insurance. It’s our hope that the relentlessly high premiums do not discourage young people from learning to drive.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

Spreadbetting hub

Click here to find out everything you need to know about spreadbetting

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Guide for First-Time Buyers

Download our free, handy guide for first-time buyers, produced in association with the Post Office.

BNY Mellon launches investment guide for women

BNY Mellon has produced a free ‘Guide to Investing for Women' to provide an introduction to investing and lo...

Your ultimate guide to the new ISA rules

As the new ISA – or "NISA" – rules come into force, we explain what has changed and how you can benefit.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Shopping for the best rate can help your savings build over time.

Top tips for protecting yourself online

One in six adults has fallen victim to a cyber-attack, according to new research from Experian.

BLOG: Top tips for would-be entrepreneurs

As Global Entrepreneurship Week draws to a close James Benamor teaches Your Money how to get a business off th...

Stock tips from top fund manager: IP Group

James Henderson, manager of the Lowland Investment Company and Henderson Opportunities Trust, selects IP Group...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Questions on health insurance?

Visit www.health-on-line.co.uk or call 01202 544255

Money Tips of the Week

Close