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Car insurance news
27/01/2012

Women and men paying more for cover

Figures released from the AA have revealed that the price of car insurance for women, and men, has continued to increase, with young drivers taking the biggest hit.

According to reports, although the cost of cover actually fell during the third quarter of 2011, the average cheapest annual policy rose by 15% to £971 in 2011, increasing by 5% in the last three months.

Simon Douglas, director of AA insurance, has voiced concerns about young motorists who have taken the largest hit in the price increases, with many young drivers finding some insurers refusing to provide any type of cover.

Mr Douglas said, "The difference shows that the cheaper deals are disappearing. Young drivers seem to be the biggest losers with a higher than average increase for them.

"It's clear that young drivers continue to be of concern to insurers, while many no longer offer cover to those under 21."

Motorists have seen the price of cover more than triple over the past five years, however, the AA has predicted that the increasing cost of men and ladies car insurance will begin to ease over the next year

A ruling by the European Court of Justice, set to take effect in December this year, which does not allow insurers to provide quotes based on gender is expected to cause a steep rise in the price of cover for young women.

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