Gender discrimination in car insurance is still very much evident, especially amongst drivers under 20 years of age, new research has suggested. While the new European court ruling which will prevent insurers from using gender as a determining factor in the cost of car insurance premium comes into force at the end of the year, the recent study shows that at the moment, the gap between the cost of insurance for males and females under 20 is wider than ever.
A new study undertaken by the price comparison website, Confused.com, looked into 4 million car insurance quotes to compile their results. They discovered that claims by young male drivers tend to be more costly to the insurer with the average cost of a car insurance claim for a male driver under the age of 20 standing at £4,400, while the average cost of a claim for a female driver under 20-years of age is just £2,770.
Statistically, male drivers have always been more likely to be involved in an accident which has caused death or serious bodily harm, and so the cost of car insurance for males has typically been higher in order to reflect this risk. However from December, the insurers will not be able to use gender as a means to calculate risk.
When the new ruling comes into force making it illegal for insurers to discriminate on the basis of gender, insurance experts predict that the cost of cover will remain the same for male drivers, while females will be left out of pocket as their premium is likely to increase in line with the cost of a male driver’s policy.