‘Boy racer premiums’ halve when men hit thirties

Men in their twenties pay more than double for their motor insurance compared with those in their thirties, according to research by moneysupermarket.com.

The analysis of almost seven million motor insurance quotes provided by the price comparison website for the last year reveals the average annual car insurance premium for a man in his twenties was £1,123 – 107 per cent higher than the £543 average premium for a man in his thirties.

Women faced far more affordable premiums a full decade earlier. The average motor insurance quote for a 20-something woman was £736 last year, 51 per cent less than the £1,503 she would have faced in her teens.

Overall, premiums fell five per cent in 2006 compared with the previous year; average premiums were £878 for 2005, falling to £832 in 2006. The average annual car insurance premium for a female driver was £646, down from £667 in 2005, while for men the average premium fell £32, from £976 to £944.

Men in their thirties found themselves in pole position for significant insurance savings, their average premium falling 10 per cent last year, from £606 down to £543.

Peter Gerrard, insurance researcher at moneysupermarket.com, said: “It’s clear from these statistics that insurers view women as mature motorists in their twenties, while men have to wait a decade longer to have their boy racer premiums wiped out.

“Younger drivers often find it hard to get competitive motor insurance, as insurers rate them as a high risk group, but there are ways they can cut their insurance costs, such as adding a parent to their policy or looking at specialist insurers who target young drivers.

“Year-on-year figures show insurance premiums have dropped by five per cent, due to fierce competition in the marketplace. Motorists have also become more active in seeking out the best deals for them, adding higher excesses and being more accurate with their mileage details.

“A word of caution however: with inflation rising, motorists should keep a keen eye on their premiums when it comes to policy renewal as it will be interesting to see whether insurers can continue to keep their pricing this low, especially when you consider some providers give what practically amounts to a loss-leading discount to entice motorists in the first place.”

The research also highlights older drivers get better value for money for their car insurance premiums compared with younger drivers. A female driver in her fifties pays £409 per year on average compared with £736 for a female driver in her twenties. Similarly a male driver in his fifties pays £454 compared with the £1,123 in his twenties.

Peter Gerrard said: “Older drivers generally find their cars cheaper to insure so this should give more scope for those insurers who claim to offer better value for elderly drivers. Motorists who are prepared to shop around for the best deal each year will always come out on top, whatever their sex or age.”