Car insurance and the way in which car insurance premiums are calculated in the UK have been changing recently. Although these changes will affect all drivers, young drivers insurance and those who would usually pay high premiums are most affected.
The first major change came around at the end of last year when it was decided that car insurance companies could not calculate premiums based on a driver’s gender. This meant that rather than men’s insurance coming down to that of women’s, women’s insurance actually had to go up to be the same as men’s. Although this was largely seen as a very unfair development, what was initially up to a 40% rise has now reduced to just a 5 to 13% rise in women’s premiums.
Because gender is now no longer a discerning factor in calculating car insurance premiums, other factors are now gaining more weight. For example, by agreeing to have a camera in your car to monitor your driving, or a ‘black box’ type piece of equipment which monitors your speed and acceleration etc, many young people find that the premium for their new drivers insurance can be reduced.
It is also believed that assessing the risk associated with certain professions is also being looked at again, as car insurance companies have to re-evaluate such factors. One thing that hasn’t changed is the influence the vehicle has on car insurance premiums. As usual, more expensive and powerful vehicles will always attract a more costly premium.
Many people who have just passed their test find that they can take out affordable young drivers insurance by going to a company that specialises in such premiums, such as 1st Central Insurance. The British Insurance Brokers’ Association (BIBA) recommends this approach as some companies are undoubtedly more geared towards new drivers insurance than others.
One positive change in the car insurance industry recently is new legislation being introduced on whiplash claims; an area which has seen many scams in recent years and has cost many innocent drivers money.