Insurance premium news
12/03/2009
Young drivers insurance could get cheaper
According to the AA, insurance for young drivers could be reduced if the Equalities Bill, due to be on the parliamentary agenda during 2009/2010, is applied to the sale of car insurance.
Age, as well as gender, is one of the significant factors in determining the level of risk attached to groups of motorists and thereby the calculation of their car insurance premium.
Simon Douglas, director of AA Insurance, says, "An unintended consequence of applying age equality to car insurance will be a reduction in premiums for a few at each end of the age range but an increase for the majority.
"There is a significantly greater likelihood of a claim being made especially by young and inexperienced people. Similarly, as age advances, the likelihood of being involved in a collision increases.
"Removing age discrimination could well double premiums for the majority of middle-aged drivers, of both sexes."
The AA spokesman's comments came after the Association of British Insurers issued a report into the impact of the Equalities Bill on insurance, for young drivers and all motoring groups.
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