Stick your wife on your car insurance now to save money and beat the EU
Adding your wife to a car insurance policy can save £502
Adding your wife to a car insurance policy can save £502 off the cost of an average policy, research from comparison website confused.com has found. It says that women can more than halve the car insurance bill for a man by simply being added to the insurance policy – if they are a regular driver.
But male drivers will have to act quick if they want to benefit from having a spouse added to the policy, as new EU rules will ban insurers from pricing on gender from the end of the year.
According to the latest confused.com car insurance price index, the average annual cost of comprehensive cover for a male driver is £954, if he is the sole name on the policy.
However, adding a spouse can cause the policy to decrease. The average cost for a driver and spouse is just £452 – creating a saving of £502.
The savings can change with age, while driving experience and no-claims discounts will also come into play.
For example, the average 21-25 year old male pays £1,763 for their car insurance, but by adding a spouse who drives on a regular basis, average car insurance prices reduce by 29 per cent.
This makes insurance £1,257 for fully comprehensive cover and creates a saving of £506.
In fact, even older male drivers could find their insurance reduced. A man between age 56 and 60, would on average pay £385 for their fully comprehensive car insurance.
This would on average decrease by £106 to £279 by adding a female partner who drives the car on a regular basis.
According to the research, 63 per cent of men surveyed didn’t know that by adding their female partner they could reduce their cost of their policy.
The reason female partners can substantially lower a car insurance premium is because they are usually seen to be statistically ‘less risky’ than their male partners on the road.
Insurance companies generally see women as safer drivers and couples are rated as less risky than single people.
This is backed up by evidence from the Department for Transport. Figures show that more male drivers are involved in accidents than female drivers – 63 per cent of all accidents involve a male motorist.
EU Gender Directive will change this
In 154 days, or on 21 December 2012, the EU Gender Directive will mean that insurance providers will no longer be allowed to take gender into account when they calculate premiums.
Until this date, insurers can continue to use gender as a rating factor, charging men and women different premiums.
This means that male drivers will have to act quick if they want to benefit from having a spouse added to the policy.
Will Thomas, car insurance expert at confused.com, said: ‘Although policies allow you to add drivers to your policy, make sure you do not represent them as the main driver if this is not the case.
‘Fronting is considered illegal and could prevent claims being paid if you add someone to the policy who does not drive the vehicle, or mask the fact it is a younger driver’s car.
‘Adding a spouse or partner is a great way of lowering your premium and spreading the risk in the insurer’s eyes, however there may be some instances where adding a female driver may make your policy more expensive.
‘Use your common sense here, if the driver is young and inexperienced or has driving convictions and a claims record then this is likely to make your policy more expensive.’
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