What women should know about their car insurance increase in December

According to the UK’s AA motoring organisation, a female driver between the age of 17 and 22 currently pays an average of around £1,000 less a year for comprehensive annual car insurance compared with a male of the same age group. This is because statistics point out that males are significantly more likely to be involved in a car accident than women. However, the new EU law, which is scheduled to begin in December 2011, will make it illegal for insurers to offer cheaper premiums for women.

The main criticism of the new law is that it is likely to result in higher insurance costs for men and women collectively. The AA expects the changes to result in a car insurance increase of up to £1,000 for women, compared to a relatively minor decrease in the cost of insurance for men. Since gender has often been used as one of the most important tools used by insurers to calculate the statistical risk of an individual having to make a claim, more weight is likely to be placed on other factors like age, experience and an individual's driving record. This will help insurers cover the cost of expensive claims from drivers who are involved in road accidents.

Women are advised to make the most of the current insurance policies before the new law becomes effective, while men are advised to wait until after the new law has passed before buying a new comprehensive car insurance policy. For more information about the changes in the UK car insurance market, visit theaa.com.

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