According to AA Insurance motorists in Britain are unaware the affect the gender ruling will have on their insurance premium.
The new ruling is set to come into force on 21st December 2012 leaving a few weeks until insurance premiums could rise for some drivers. The ruling is that gender can no longer be taken into account as a risk factor when determining an insurance premium. As it stands an insurance policy taken out by a female can be 40% cheaper compared to a male, as women are seen as less of a risk to insurance companies.
AA found that 26% of Brits are unaware that their car insurance premium will be affected by the new ruling and 40% also admitted they didn’t know when the ruling will come into force. 78% of young drivers aged 18-24, who are most likely to be affected, were found to be the most aware of the ruling. 72% of women in this age bracket thought their premium would rise and 35% of men thought their premium would fall.
The research also found that 66% of middle aged women were concerned about their premium changing compared to 40% of men who thought their premium would increase as well.
The Association of British Insurers has estimated that the ruling could cost women 25% extra on their insurance premium while men could see a 10% fall.
Simon Douglas Director of AA Insurance said: “For many years, insurers have charged young men much higher premiums than young women because they are so much more likely to make expensive insurance claims.”
“But as they get older, the difference between men and women in the number and cost of claims they make reduces and from around age 40, men and women pay similar premiums.”
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By Amanda Bainbridge