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Premiums for young male drivers down 30%

Your Money
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Your Money
Posted:
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17/07/2013

The average comprehensive car insurance premium for 17-20 year old males has fallen by a staggering 30.7% across the UK over the last 12 months, new figures reveal.

This age group now pays an average £2,493 for their comprehensive insurance down from an average of £3,596 a year ago.

The latest Confused.com/Towers Watson Car Insurance Price Index found that after several years of soaring increases, car insurance prices in general have fallen dramatically.

The average comprehensive car insurance price now stands at £678 compared with £797 this time last year, a year-on-year decrease of £119 (-14.9%).

For Third Party Fire and Theft cover, average premiums stand at £1,109, showing reductions of 3.5% year-on-year with reductions of 5.2% quarter on quarter.

While premiums have dropped for 17-20 year old men, the same cannot be said for women.

Females aged 17-20 are the only age group to see a year-on-year increase in comprehensive car insurance premiums, seeing an increase of 6.2% and paying an average of £1,995. This compares with £1,878 this time last year, representing a rise of £117.

Traditionally, young female drivers enjoyed lower car insurance premiums than their male counterparts, but under the EU Gender Directive, which came into force last December, insurers are no longer able to use gender as a factor when pricing insurance.

Gemma Stanbury, head of car insurance at Confused.com, said: “It will be welcome news that the second quarter of 2013 has brought car insurance premium reductions across the board. In fact we have seen a 15% decrease in comprehensive insurance premium, meaning cheaper prices all round for British drivers.

“There has always been a clear distinction between the cost of car insurance for men vs. women. But following the EU gender ruling the gap is almost diminished with a price difference of only £27, compared to a difference of £132 just a year ago.

“Unlike previous years younger drivers are no longer being singled out with price rises and are also enjoying dramatic price drops. In Q4 2010, 17-20 year old male drivers saw year on year comprehensive price hikes of 40.6%, in contrast to Q2, 2013 which sees them drop by a staggering 30.7%.”

Drivers are being advised to take advantage of latest price drops to renew and try and get the best deals possible.


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