Car insurance companies take young male drivers for a ride

With car insurance rates for young male drivers nearly twice what they are for their female counterparts, car insurance companies have been accused of taking young men for a ride, experts say.

According to one car insurance comparison website, women between the ages of 17 and 20 pay around £1,959 for annual cover.  However, young male motorists in the same age group pay an average of £3,730, making discount car insurance for young drivers incredibly hard to find.

However, there are even more inconsistencies within the motoring industry along gender lines.  Young men who decide to have an additional driver placed on their policy can sometimes result in saving around £500 on average, yet female motorists of the same age stand to save less than half as much, with the average being around £230.

The comparison site’s president, Gareth Kloet, commented on the new findings, stating that new a new ruling from the European Court of Justice goes into effect this December which will bar insurers from using gender to make pricing decisions.  However, many insurers seem to be unprepared for the change, as the massive disparity between what men pay for insurance versus what women of the same age pay still exists, Mr Kloet added.

Industry experts predict that women will be the big losers in the new pricing from December, with insurers expected to raise their rates to the level of male drivers instead of discounting the insurance rates they charge men.  This makes it more important than ever before to shop around for the best rates, said Mr Kloet, as insurers clearly have much to do before they come into compliance with the new legislation.

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