As per a study, male motorists usually pay £101 more a year for their car insurance than women. The study suggests that men paid an average annual premium of £812 for comprehensive car insurance in the final quarter of 2016 compared with £711 for women.
The interesting thing is that the gap had widened compared with a year earlier. Though it is banned to consider gender when setting premiums, but can consider the wider risks.
The conclusion is the quality of identifying particular accident risks, and would price premiums accordingly has made these changes.
In general, men drove more miles, in more advanced cars, and were more likely to drive for work – all of which would increase the probability of accidents or increase the repair bill.
European rules, introduced at the end of 2012, mean insurers cannot take the gender of their customers into account when setting their insurance premiums.
Other factors can be counted too, after the new rules were introduced, men only paid £27 more on average on an annual premium, according to the study.
Couple of years ago, this widened to £51, before going above £100 for the first time in the final quarter of last year.
In general, the typical comprehensive car insurance premium stood at £767, rising by 14% – or £95 – in a year, according to the study.
As per, James Dalton, director of general insurance policy at the Association of British Insurers (ABI), “Motor insurance remains a highly competitive market, with motorists shopping around for the best deals. But pressure is growing on premiums.”
Further, he added, “Cold callers and ambulance-chasing lawyers are still finding ways to exploit the system, with government data suggesting a 5% increase in whiplash style claims. This is driving up costs for honest motorists.”
“In addition, the government has doubled Insurance Premium Tax in just over a year, and repair bills are going up as cars get more sophisticated. So while insurers are doing all they can to control costs, these pressures show how important it is that the government’s latest proposals to tackle low value whiplash style claims are implemented fully and as quickly as possible, and that there is no rise in Insurance Premium Tax”, he concluded.