Car Insurance 'Gender Gap' Grows

By Mark Harris
Published on 25 Sep 2008
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Car Insurance 'Gender Gap' Grows

Young men continue to pay far more for their insurance than other groups.

The gender gap between how much young males and females pay for their car insurance has widened still further, the AA said today.

Industry cost trends identified by the car insurance provider show that, since 2003, premiums for young men have risen steeply - while those for young women have been falling. Overall, the "gender gap" has increased by almost 60 percent over the past five years.

Car insurance firms base their premiums on risk; in other words, they believe that young men are at higher risk of being involved in a car accident than they were in previous years. This is borne out by government road casualty figures, which show that under-25s account for 29 percent of all deaths and serious injuries caused by car accidents.

Moreover, males account for 63.4 percent of the total toll for the age group.

Simon Douglas at the AA added: "Insurance premiums are based on claims experience and the unfortunate facts are that men aged under 21 are 10 times more likely to have an accident than men aged 35 or more but young women are only five times more likely to have an accident than women aged 35 or over.

"These figures make for worrying reading and underline why young people, particularly men, pay high premiums although, of course, the first year's premium is exaggerated because they will not have earned any no-claim bonus."

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