A month in insurance headlines: interesting articles from the past 30 days

car insurance gender gap Why men still pay more for car insurance than women

Calculating insurance premiums is all about calculating risk, and because women are statistically much safer behind the wheel; it makes sense to use gender when calculating premiums. However, in 2012 the European Court ruled that gender couldn’t be used as a pricing factor and insurance providers duly complied. Almost overnight the pricing gap narrowed with men paying an average of 20% more than women for cover, but four years on and men are now paying an extra 27%. Commenting on the surprising findings Malcolm Tarling, of the Association of British Insurers (ABI) said “Factors including type of car, number of miles driven, driving record and claims experience will all impact on the cost of cover. Men and women are likely to drive different types of vehicle, do different mileage, and these variations, not gender pricing, will reflect in premiums.”

One in four motorists will write-off a vehicle during their lifetime

Echoing the above findings that men are riskier behind the wheel; another report has found that men are twice as likely to write off vehicles compared with women. The figures also revealed that men were much more likely to lie about the causes of an accident (with 48% of men ready to bend the truth compared to just 20% of women) and that cars coloured blue were most likely to be written-off. Arguably the most surprising statistic was that one in four motorists will write-off a vehicle at some point in their life. Find out more about write-offs in our recent post What is a car insurance write-off and how are the categories changing?

Tougher penalties for spending too long behind the wheel

Every motorist knows that tiredness kills and that responsible drivers should take regular breaks. However, the pressure put on some commercial drivers means they are breaching their tachograph restrictions and breaking the law. In response the government is considering on-the-spot fines of £300 for every breach stretching back over the past 28 days (to a maximum of £1,500 before a court appearance). Tiredness when driving is thought to cause one in five accidents and one in four fatal collisions. Commercial vehicles are involved in 40% of sleep-related incidents and the consequences are much more likely to be serious or fatal. The proposed measures have been warmly welcomed by safety organisations and the wider motoring public.

The country’s crash for cash hotspots revealed

Britain’s second city has been awarded the dubious accolade of being the ‘crash for cash capital of the country’. The rankings by the Insurance Fraud Bureau revealed that half of the ‘top ten’ postcodes for fraudulent ‘crash for cash’ claims were in Birmingham. The other towns and cities that made it into the infamous ‘top ten’ were: Bradford, Manchester, Oldham with the capital having only three postcodes in the top thirty.  Crash for cash scams are not only a real danger to drivers, but cost the industry £336m a year, and it’s law-abiding motorists who end-up picking-up the bill.

 

 

 

 

 


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