Cheap car insurance for young drivers is still much too rare, according to recently released research findings indicating that gender discrimination for younger motorists still holds strong.
Thanks to new laws going into effect this December, gender differences are no longer to be used as a basis for car insurance rates. However, younger motorists are still seen as high-risk by car insurance companies, according to researchers, and in order to meet the requirements of the new law, premiums for female drivers in the same age group are predicted to rise by December of this year.
Claims made by younger drivers are more expensive, as these claims have a higher statistical likelihood of being for bodily injury and even death, according to a representative from the car insurance comparison site that conducted the research. In order to cover the costs of these more expensive claims and still comply with the letter of the law, premiums for female drivers are likely to increase to math the level of their male counterparts, the representative added.
According to official figures from the British Insurance Brokers’ Association, an 18 year old male driver’s average car claim costs approximately £4,400, yet the average costs of a car claim for a female of the same age is only £2,700. Male drivers under the age of 20 also get into accidents twice as often as female ones, Biba also said.
A Belgian consumer group precipitated the new law, as it claimed that the principle of gender equality held by the European Union was contradicted by an exemption for insurance providers. As a result, the European Court of Justice ruled in the consumer group’s favour.