CAR INSURANCE NEWS ROUNDUP: WEEK ENDED 21 nov 2012:
Big news this week is how the nation’s parents are ready to throw in the towel as the gender ruling deadline looms, leading to fear for their wallets.
One out of every three mums and dads that give their kids a bit of help with their high car insurance rates are absolutely convinced that the new gender ruling, which goes into effect next month, will make it financially impossible for them to contribute any longer.
With car insurance companies no longer able to take a driver’s gender into account whilst making risk assessment calculations for the purposes of an insurance quote from 21 December, there’s a veritable panic amongst parents, with more than 60 per cent believing that the new rules will raise rates for their children.
Around 32 per cent of parents who make contributions to the car insurance costs incurred by their children made the prediction that rates will increase to such unmanageable levels that it will make it financially impossible to contribute towards insurance for their son or daughter.
Of course, anyone who knows exactly how the new rates will be calculated have said that the panic may be a bit premature. In fact, young male drivers are actually likely to see price reductions of about 10 per cent, though young female motorists are likely to see increases of as high as 25 per cent.
However, young women have always gotten an excellent deal on their insurance, thanks to the lowered statistical likelihood of young female drivers getting into car accidents. Of course, these lower accident rates are now no longer valid as a statistical point, thanks to the European Court of Justice’s recent ruling, despite the veracity of the statistic.
Car insurance comparison websites, a sector that keeps an eagle eye on the industry, have yet to detect any massive price changes ahead of the ruling’s deadline. In fact, so far the only rate hikes these comparison sites have seen have been averaging at about 2 per cent presently.