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Insurance price drops could be 'short-lived'

6 November2021

Younger drivers might have been pleased to see their insurance costs falling, but the good news might not keep coming, according to Confused.com.

The average cost of car insurance for people aged under 20 had fallen by 13.6% (360) over the course of a year, the figures for July-October reveal, while drivers aged 36-40 have enjoyed an 11% drop on average.

On the whole, the falling prices have served women better than men - and young women have benefited more than anyone, with a massive 17.3% annual drop in their insurance costs.

Looking across both genders and all the different age groups, prices fell by an average of 87 (10.3%) between the third quarter of 2011 and the same period this year.

However, we're in for some big changes at the end of the year. The EU Gender Directive comes into effect on 21st December, meaning insurance providers won't be able to charge women less for their insurance. Simply being female might make them statistically less likely to have a crash, but it'll soon be against the law to take their gender into account.

The Treasury estimates that the Directive could mean younger women behind the wheel face increases of up to 24% for their insurance.

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