Gender gap widens for young drivers' premiums

Young men can expect their first year's car insurance premium, following the euphoria of passing their test, to be twice that of their female counterpart, according to figures from AA Insurance.

And while premiums for newly qualified young male drivers have been rising steeply over recent years, for women they have been falling - the gap having widened by 59 per cent since 2003.

This appears to contradict the falling trend in the number of people killed or seriously injured on Britain's roads. But the grim fact is that the overall share of such accidents among under-21 year olds, especially men, continues to grow.

This is underlined by the latest figures from the Department for Transport (Road Casualties Great Britain 2007 released 25th September) for 2007, which show that the number of car drivers killed or suffering serious injuries continues to fall despite rising traffic levels. Yet nearly a third (29.1 per cent) of those are accounted for by under-25s, compared with 25 per cent in 2000. Young men account for almost two-thirds (63.4 per cent) of this toll..

"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," says Simon Douglas, director of AA insurance.

But why such a difference between the genders?

Simon Douglas explains. "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. The average car accident insurance claim for a young male driver is just under £4,500 compared to £2,700 for their female equivalent. For drivers aged over 30, the average cost is £1,400 for men and £1,200 for women."

He adds: "Regardless of gender, premiums quickly fall for drivers who remain accident blame-free and don't collect driving offences. After the first year, the premium falls by around 30 per cent and continues to fall over subsequent years provided their record is clean. In fact, a young person passing their test at 17 can expect the premium they pay to fall by up to 80 per cent by the time they reach age 21, assuming they are driving a similar vehicle and keep a clean driving record."

How young drivers can reduce their premiums

Bearing in mind the statistics, the AA offers these tips for new drivers:

Drive sensibly and concentrate on earning your no-claim bonus - after three years your premium could fall by as much as 80 per cent.

Avoid motoring offences such as speeding, which will increase premiums.

Carry on learning - young drivers who have just passed their test can achieve a premium discount (possibly up to 35 per cent) if they take their Pass Plus qualification as well. This consists of practical modules to improve driving skill in town, country, at night, and on a range of roads including motorways or dual carriageways (AA Driving School offers Pass Plus courses)

Choose an older, less powerful car (in insurance groups 1 to 3)

Keeping your car overnight off the road or at best in a garage will attract premium discounts

Consider your premium excess (the amount you are prepared to pay in the event of a claim) - the higher this is, the lower your premium.

Think about Third Party, Fire & Theft cover if you have an older car. This means that in an accident that is your fault your insurer will not pay for damage to your car, only the damage caused to other cars or property. This cover is around 30 per cent cheaper than comprehensive for the same car.

Shop around: AA Insurance will search its panel of insurers to find the cheapest premium: theAA.com

Consider adding a parent or, if you are a man, your girlfriend/partner (assuming she has a good driving record) to your insurance - doing so can attract a discount. Unfortunately, it's unlikely to work the other way round - if you are a newly qualified woman, adding your male partner to the policy is likely to increase your premium!