Insurance Prices Change Quickly
There is still uncertainty about how a possible change would affect drivers. If this continues, it would be asking the insurance industry to rip the rule book. There exists a three-year transitional period, but companies are concerned about the possibility the court will immediately introduce unisex belied. While not certain, it is very likely that gender-based pricing will be banned. In the short term, we do not think this is good news for everyone. If they can not use it [sex] they [insurers] to take more risks. As a result, they’re going to put their prices to such risks.
If this happens, it would mean that young men would eventually see their premiums go down, and young women should pay extra. But the AA is warning that at least in the short term, the confusion could lead to higher prices all round. At the minute, young women pay less because they are seen as safer drivers. Statistics show men in their late teens and early 20s are more likely to speed, to be involved in drunken driving accidents, and the claim on their policies. The cost of car insurance is already rising across the board. Last year, policy was an average of 33%. It was even steeper for young drivers who saw a 58% increase.