Flint Bishop

Local accident stats suggest young male drivers should pay more for their motor insurance

A leading local insurance broker has expressed concern about the new European Court of Justice gender ruling that means young women will now pay the same car insurance premiums as young men.

Brett and Randall estimates there are up to 1,600 accidents a year in Leicestershire where someone is injured, which involve a young male driver aged 17 to 24.

Chris Hutchins, a director at Brett & Randall said: "You hear friendly banter all the time about who are better drivers, men or women, and the argument on who is better will no doubt rumble on, but what you can't argue against are the statistics which prove particularly amongst younger drivers that women are a better insurance risk.

"The new ruling is going to a have a considerable effect on the insurance industry, which sets premiums based on risk and seeks to reward lower risk drivers like young women who are statistically safer drivers.

"When the changes come into effect, the new system will basically mean young women will have to subsidise the premiums charged to young men".

Brett and Randall based its estimate for Leicestershire accident figures on the most recent Department of Transport statistics for 2009, which also show that seven out of ten drivers in accidents where someone is killed or seriously injured are young men.

The British Insurance Brokers' Association says the current cost of the average car claim by an 18-year old man is £4,400, while only £2,700 for an 18-year old woman.

The change in the rules comes into effect in December 2012. 

 

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Article published by Midlands Business News on 8 March, 2011

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