Younger drivers pay the price for a racy reputation
Young male drivers pay on average 79 per cent more than young women for their car insurance, according to research by moneysupermarket.com.
Moneysupermarket.com analysed car insurance premiums for drivers of all ages. It reveals that while the cheapest premium for an 18 year old male, driving a 2005 1.4L Ford Fiesta, is £4,897, the average premium is £7,917 - a staggering 79 per cent (or £3,494) more than the £4,422 average for an 18 year old female. However, young males who have a few years experience on the road will see a considerable drop in premiums, with the average cost for a 19 year old falling to £3,711 - a 53 per cent decrease. Premiums continue to reduce by a significant amount as a drivers age rises from late teens to twenties and thirties. This reduction becomes more gradual as motorists get older, but it's not until drivers reach 50 that men begin to pay less than their female counterparts.
Steve Sweeney, head of car insurance at moneysupermarket.com, said: "Young male drivers traditionally bear the brunt of a ‘boy racer' reputation through the cost of their premiums. But it doesn't stop there - with men paying more than women for annual car cover until they hit their fifties. Many insurance companies view women as safer and more mature motorists and this is why their premiums are cheaper."
Younger drivers with a need for speed can expect to be penalised even further. A speeding conviction (SP30) will add around eight per cent to the cost of an average premium for an 18 year old male.1 Speed demons have to factor in the additional penalties of up to six licence points and an on-the-spot fine too.
Steve Sweeney concluded: "It's a shame car insurance premiums are based on age rather than experience, but there's no sense bumping up the cost of cover even further with a speeding conviction. While it will be hard for younger drivers to find competitive cover, there are ways to cut the costs, such as adding a parent to their policy or looking at specialist insurers who target young drivers. With this said, motorists who are prepared to shop around for the best deal each year will always come out on top regardless of their age or gender."
moneysupermarket.com offers the following tips to younger drivers to cut car insurance costs:
Shop around - The Association of British Insurers says you can save 35 per cent by comparing as few as five insurance providers.
Buy online - Many car insurance providers offer discounts to customers that buy online.
Mileage limit - Consider a mileage limit or to only drive at certain hours of the day.
Car security - Make sure you have an alarm and immobiliser.
Drive a car with a smaller engine - A newer, more reliable car that is less likely to be used by 'boy racers' will have a cheaper premium. Aim to drive a car like this for at least two years after passing your test - and forget about turbo-charged cars, with big spoilers, fat tyres, alloy rims and other "sexy" extras.
Parents - If at all possible, avoid being added to a parent's insurance policy. It prevents you from building up your own no-claims bonus. However, adding a more experienced named driver to your policy may bring down your premium.
Pass Plus - This is a certificate where a young driver who has already passed his or her driving test receives specific lessons in night, motorway and town traffic driving; achieving Pass Plus can earn significant discounts (as much as 35%) on your car insurance.
Payment method - Drivers looking to keep the cost of their car insurance manageable may opt for the convenience of paying by monthly instalments, rather than in an annual lump sum. Those who decide on monthly repayments can expect to pay an additional APR for this option though, so shopping around for the best deal is crucial.