Car insurance prices are reducing

Wanted: A man for a life of love and cheaper car insurance

Shout it from the top of a mountain – car insurance prices are going down! 2012 sees insurance premiums decreasing for the first time since 2009, and everyone is benefitting from a reduced premium. The national average has gone down by 7.1 per cent, giving us an average premium of £797 for an annual comprehensive policy.

This is good news especially for lady drivers, as these reduced premiums will lessen the impact of the EU gender ruling in December. Not only that, but tying the knot will give you an even bigger reduction in your premiums than usual (it’s nice to know that husbands are good for something!). All the figures quoted below are for an annual comprehensive policy.

Four times a year, Confused.com teams up with Towers Watson to create the car insurance price index, which tracks trends in premiums over time and for different groups. At the moment, female drivers pay on average £736, over £100 less than men for their car insurance. This goes in line with the evidence that women are consistently safer drivers than their Y-chromosome counterparts.

Women are also enjoying a larger reduction in their premiums than men, with a reduction of 7.4 per cent against last year, versus a paltry 6.8 per cent for male drivers. Given that prices have been expected to go up for women once the EU gender ruling comes into play, this may be a temporary relief in wake of the storm to come.

The effects of marriage

It is interesting to see the difference that getting married makes to your premium, or at least the difference that having your partner on your policy makes. If you are the sole person on a policy, you’re likely to pay an average of £908. Add your spouse to your policy, the price plummets to £446. This difference makes sense; if you have a knock in the car you’ll have a lot to answer for when you get home, so married drivers tend to drive a little more cautiously to avoid getting an earful. The savings don’t stop there, either. Single drivers are paying 7.6 per cent less than last year for their insurance, whereas couples on a single policy have a reduction of 9.2 per cent.

Strangely, young married couples don’t benefit from this, and are actually one of the few groups whose insurance has gone up slightly. Drivers between 17 and 25 who are insured with their spouse are paying an average of £1922 against £1597 for single drivers of the same age group. If you’re going to add your partner on, don’t do it until your mid-twenties.

So even though the price of women’s car insurance is set to go up at the end of 2012, ladies can take some small comfort in knowing that their prices are currently going down. Make the most of it.

This guest post was written by Jamie Gibbs, the resident blogger for Confused.com, who specialise in car insurance quotes.

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