Women drivers will soon pay for boy racers
Women drivers to pay more to pay more for insurance due to ‘boy racers’
Women drivers will soon pay a for boy racers, as insurers are banned from discriminating between the sexes. Giant insurers are to be banned from using your sex when deciding how much you should get for a pension or pay for insurance.
From December 21, this new rule will mean car cover hikes for female drivers, and boosts in retirement income for men.
The price changes will come despite statistics suggesting women drive more safely and men live shorter lives. In some cases it is likely to lead to price hikes of more than £500 a year on some policies, so now could be the time to buy.
Strict deadline rules demand applications for pensions and insurance policies must be completed by midnight on December 20. If any documents are unsigned or outstanding, it could scupper your application.
With nearly three months to go, many leading insurers are coy about how rates will change. Most refuse to say whether prices will go up or down at the stroke of midnight, or whether they will factor them in during the run-up.
However, the Post Office says it will start pricing its life cover as unisex from November 27, while insurer LV= has guaranteed the price on most protection, provided the application is in before December 1.
SAFE DRIVERS HIT BY £450 PRICE RISE
Insurers’ own data highlights women don’t make as many car insurance claims as men. As a result, they have rewarded them with lower premiums.
Young male drivers, on the other hand, are the most dangerous. This means they pay hefty premiums, often running to thousands of pounds a year, to compensate for making the most expensive claims.
From December 21, a man or woman of the same age — assuming the same driving history and car — must pay exactly the same. Currently, the average premium for car cover is nearly £3,100 for a male driver under 21 — but nearly half that for women of the same age.
The new gender rule is likely to see a 25 per cent rise in cost for women, industry estimates suggest. This could pile as much as £450 onto the average bill.
For men, the cost is expected to fall by between 10 per cent and 20 per cent, depending on the insurer.
Verdict: Women who are due to renew in the weeks before the December deadline may find it worthwhile to buy their car insurance a couple of weeks early.
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