Recent car insurance rate drops for young male motorists have left people wondering if discount car insurance for young drivers has finally arrived as insurance companies react to the EU’s new young driver equality decision.
A recent ruling from the European Court of Justice has made it illegal for car insurance companies to charge differing premium prices through the use of gender as a basis, even though statistical analysis shows that younger male motorists have a much higher likelihood of crashing than their female counterparts. However, even though the decision will not be enforced until December of 2012, many insurers have already lowered their insurance premiums for their male customers.
Insurers have begun to revise their price structures well in advance of the change to the point where the average premium price drop for both men and women is around 6 per cent, according to the AA. AA Insurance director, Simon Douglas, remarked that the recession will continue to be a contributing factor in price drops in the coming year. Commenting that ‘something had to give,’ Mr Douglas blamed a confluence of events such as a bad recession during the top of the seven year insurance cycle.
Meanwhile, insurance providers such as IKube and the Co-op have already revealed the details of its ‘young driver’ policies, which usually revolve around the use of a telematics device fitted to a motorist’s car in order to monitor their driving habits, such as how fast they brake and accelerate, how they take corners, and how fast they go. These policies then reward safe and responsible motoring with cashback and reduced premium prices.