Car Insurance News

Most motorbikes covered - including supersport and touring bikes

New EU rules on car insurance explained It could be worth shopping around to find the cheapest car insurance policy available The European Court of Justice announced plans last year to scrap gender as a contributing factor towards car insurance. This will affect nearly all drivers as it could push up the cost of car insurance even further. It is felt by many that the decision that gender should not be used to calculate risk could also cross over into other insurance policies in time. The EU has decided that it was discriminatory to use gender as a deciphering factor in determining car insurance prices.

Women, who typically are seen as lower risk drivers compared to men, may now see their policies bumped up to match that of men. Insurers are unlikely to reduce the rates of men to match women and, therefore, young female drivers in particular may feel the impact of the EU ruling worse than any other group. In contrast, men might see their car insurance premiums reduced slightly. This means that anyone who has purchased car insurance since the end of December 2011 will be affected by the ruling on their next renewal. The ruling will be enforced on 21st December 2012 and until then gender is still to be used as a contributing factor. Losers and Winners The Association of British Insurers suggests that the gender ban will increase premiums for women by up to 20%. Men, however, could see their premiums reduced by up to 10%. The current system operates on the risk assessment of the driver. Statistically, female drivers are at a lower risk compared to men. The British Insurance Brokers’ Association have suggested that the average 18 year old male will claim £4,400 on their car insurance. This is in comparison to the average 18 year old female claim of £2,700 The AA British Insurance Premium Index shows that insurance has increased by 15% in the last three months of 2012. Young drivers experienced the highest average increase.

It could be worth shopping around to find the cheapest car insurance policy available before the ban comes into force at the end of the year.

Рlease write comment on my blog!