Car insurance premiums are determined based on the chance of the driver making a claim. And the figures used by insurance firms highlight that younger drivers, i.e. under 25, are more likely than older drivers to be involved in an accident.
In addition, the data finds that these incidents are likely to be more expensive and serious to resolve compared to accidents suffered by those who are older.
Combine these two factors – cost of claim and frequency of accident – and you have a significant reason why car insurance for young women tends to be dearer than the typical rate for all motorists.
It is probable that you will finds that the typical cost of car insurance for young females has risen across the past 12 months. A reason for this could be the effect of an order which came into effect on December 21, 2012, which has made it against the law for insurers to take somebody’s gender into consideration when determining how much to charge.
Up to this point, insurers referred to figures which highlighted that young men were more probable to be involved in collisions than young women. However, the European Court of Justice’s Gender Directive made this practice illegal. Insurers cannot distinguish between women and men anymore based solely on a person being a woman or man, resulting in the end of cheaper car insurance for women drivers.
This development has led to the insurance industry exploring different ways to reward careful drivers and so, as a consequence, provide cheaper car insurance for young females who demonstrate that they present a lower risk profile.
The black box option
This has led to the growth in black box insurance policies. These work through having ‘black box’ technology fitted in the car which monitors the motorist’s habits, taking into consideration the time of when the majority of driving is done, cornering and braking, the types of road used and acceleration rates.
These details are used to calculate if the driver deserves a reward for careful driving in the form of a lower premium. Rates are usually reassessed every quarter, with changes highlighted in subsequent monthly direct debut payments, or upon annual renewal.
Indeed, the telematics analysis could highlight that the motorist is actually more risky than first realised, which may lead to premiums increased upon review.
A variation along this theme for young female drivers looking to save money on their car insurance expenses is pay as you go car insurance. This is where you are basically charged for the amount of miles you drive.
The idea is simple: the more miles you drive, the more chance there is of you being in an accident. On the flip side, the smaller number of miles you drive, the lower the chance of making a claim on your insurance. Hence young women drivers who are willing and able to lower and limit their mileage could lower their premiums by this kind of policy.
The impact of vehicle choice
Another significant factor that determines how much young female drivers pay for their car insurance is the car they choose to drive. All cars are given a number from one to 50 to place them in car insurance groups to determine premiums and the typical rule of thumb is that, the bigger the group number, the bigger the premium.
This results in young women possibly preferring to choose a car from a lower group to lower their insurance costs. Keeping the car on a driveway or in a garage overnight will assist in keeping premiums minimised, along with installing security devices, like tracking devices, alarms or an immobiliser.
It is also best to avoid modifying your car as doing so could result in increasing premiums. If modifications are made, regardless of the size, make sure to tell the insurer otherwise your policy may be invalid.
The impact of drivers
Insurance firms may also cut the cost of young women’s car insurance if the policy holder takes a PassPlus course, which coaches people on careful driving techniques. You can learn more about this in one of our latest videos.
Another option that may assist in offering lower premiums on vehicle insurance for young women motorists is including named drivers on the policy. This is where one or greater than one older and experienced drivers are added to their policies as named drivers.
This helps since the insurer will believe the car is being for at least some of the time by a person who is a lower insurance risk than the young women driver. Although, this idea must not be confused with the illegal method of ‘fronting’. This is when the car is insured in the older, more experienced drivers name to gain a lower premium, despite the young woman being the main driver in reality.
Fronting should be avoided at all costs otherwise your insurer will invalidate a claim is they find out. It may even lead to a court case, and everyone involved would definitely have issues trying to gain insurance in the future.
The important tip when looking for lower car insurance for young female drivers is to look around. If you quote services at freepricecompare.com, then you have access to more than 100 insurers, offering you an array of quotes to choose from.
You can find more ideas on ways to lower the cost of car insurance for young female motorists on the freepricecompare.com money savings tips page.
On the other hand, you would be able to get a more dedicated examination at the car insurance industry for people in your age bracket on our young drivers car insurance guide.
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