Going to be busy for a few weeks.

Hello everyone, i am going to be busy over the next few weeks which means i wont be able to bring you news on car insurance over these weeks.
I hope you can be patient over this time as after i will be back to normal in giving you snippets of car insurance news.
Thats all i can give you so unfortunately this blog will not be active for a good week or two sorry about that.

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Reasons why your car insurance costs as much as it does.

Gender

In years past, insurance companies offered rates that were gender specific. Detailed analysis of claims statistics has revealed that male drivers are involved in more accidents on average and that they are involved in claims with a higher cost. To account for these facts, the insurance companies historically insured males at a higher rate. However, a recent ruling by the European Court of Justice has determined that this is a discriminatory practice, and insurance companies must now take gender out of rate determinations. Many insurance companies are adjusting their rates accordingly but perhaps not in the way expected. Rather than lower male drivers’ rates, they are increasing female drivers’ rates. Therefore, female drivers may expect to see their rates increase even more at their next renewal.

Driving History

If your car insurance rates are not as low as you would like them to be, you can consider improving your driving history. Car insurance companies provide you with a specific premium amount customised to their estimated financial risk to insure you. One of the most significant indicators that they look at is your driving history. If your driving history is spotless and has no claims, the insurance company may feel comfortable in providing you with a lower rate. On the other hand, if your driving history is spotted with traffic violations and car accidents, the insurance company will view you as a riskier driver. Your rate will reflect this. Improving your driving record is a great way to reduce your high rates or to keep your lower rates low.

Vehicle

The fact is that the cost to repair damage to one vehicle may be far more expensive than the cost to repair damage to another vehicle. Further, if a car needs to be replaced, it will cost the insurance company more money to replace one model than it would to replace another model. When an insurance company calculates rates, it will review the average repair cost of the model as well as the replacement value of a model. Generally, models that are higher in value or that have more features and electrical components will have a higher rate. When you shop for a new vehicle in the future, you can compare rate quotes on different models to learn which will be more affordable to insure.

The cost of insurance is increasing for many drivers, but there are some things you can do to keep your costs low or to lower your existing rates. 

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Female drivers to pay a lot more for car insurance?

As a result of a European Court of Justice Ruling that insurance companies can no longer use gender based risk assessment for calculating car insurance premiums from December 2012, it’s likely that premiums will rise for young women drivers.

Previously, young female drivers had been paying significantly less for car insurance because statistics showed that they experienced lower accident rates as well as actual claims costs.  The average claim cost for an eighteen year old female is £2,700 whereas their male counterpart average claim cost is £4,400.

Insurance companies will have until December 2012 to calculate a new pricing model that eradicates this gender based factor from insurance premiums.  The upshot is that young female drivers are likely to see a significant increase in their car insurance premiums – as much as 50% in some cases – to subsidise male drivers.  It is also unlikely that young male drivers will see a comparable decrease in their premiums because of the known statistical risk.

With higher car insurance premiums forecast for young female drivers it is worth shopping around and to use a reputable insurance broker with access to a panel of insurers.

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