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Young Female Drivers Insurance Price Hike - 7 Ways to Lower the Cost

Thursday, 17th March 2011

If you are currently or imminently taking driving lessons, you will no doubt be aware that running a car can be an expensive business these days.  Drivers have to fork out increasing amounts on petrol, then there’s car tax and MOT...  those taking driving lessons in North London in particular face the prospect of insurance fees higher than the national average.  On top of all this, the cost of car insurance is set to rise.  Young women in particular will have reason to be concerned about rising cost of car insurance. 

On March 1st it emerged that a new ruling by the European Court of Justice sees young women set to pay higher car insurance premiums.  This ruling brings to an end the use of gender as a factor in insurance pricing.  The news has been met with mixed responses from insurance companies, who must now review their risk-based pricing model. 

Since driving insurance prices for young males are unlikely to see a significant drop, some insurers are already counting the profits, while others are taking a different view.  Some insurers believe that the new system is unfair and will not realistically reflect a woman’s risk as a driver. 

So what does this really mean for young female drivers?

The changes are most likely to affect women under the age of 25 (since this is the group that tend to have the fewest and least expensive accident claims).  According to the British Insurance Brokers' Association (Biba), from December 2012, this group are likely to see a significant increase in their motor insurance.  Steve Foulsham, technical services manager at Biba, said this is likely to be up to 25% but in some cases could be as much as 50%. 

It is worth remembering that such predictions are still speculative.  It is possible that insurance companies will find ways to apply the new rules while remaining competitive.  There has already been a slow increase in premiums for young women (a trend which is set to continue even before the December 2012 ruling deadline), and insurers that have alternate ways to reduce the cost will have a competitive advantage.

Even if you are still at the driving lessons stage, it is a good idea for both male and female drivers to look into car insurance options and find out what deals are available. 


7 ways to lower the cost of your car insurance

Compare prices – This is the first step in finding the lowest available cover for you.  There are several comparison sites, and a few minutes of your time could save you a lot of money.

Advanced Driving Skills – Pass Plus is an advanced driving course approved by the DVLA and equips new drivers with extra skills for safe driving.  Most insurers offer a reduced price for drivers with Pass Plus.

Joint policy – Adding an older, more experienced driver to your policy is one way of lowering the cost. Be aware, however, that ‘fronting’ the policy (having someone other than the main driver registered as such) is illegal and is classified as fraud.

Secure parking – If your car is left in, for example, a secure, lockable garage overnight your policy cost could be lower.

Larger excess – Choosing a higher excess amount lowers the price of insurance premiums.

Security products – Installing additional Thatcham-approved security devices, such as a wheel lock, lowers the risk in the eyes of the insurer.

Fewer optional extras – Insurers will try to sell extra add-ons to a policy.  Consider if they are really necessary, but be careful to dismiss useful products such as legal cover.

Find out more here:

British Insurance Brokers' Association (Biba)