Car Insurance Prices Up For Young Male Drivers
Tiger Watch, the UK's most up-to-date car insurance price monitor, recorded a 3.1% rise in the cost of premiums in October compared to last month and a 1% year-on-year increase.
Tiger.co.uk analyses thousands of quotes in order to produce a monthly car insurance price monitor - Tiger Watch. The monitor records trends in premium prices for a range of driver profiles of different gender and age, providing the country's most up-to-date price tracker.
The October results show that car insurance prices are up just over 3% compared to those recorded a month ago and 1% higher than the premiums seen in October 2012.
The increase, however, is solely due to a rise in the rates for younger make drivers, as Andrew Goulborn, Tiger.co.uk's Commercial Director, explains: "Whilst Tiger Watch is showing an overall increase in rates compared to just a month ago, this is due to a number of insurance brands apparently adjusting pricing for young male drivers. When our 20 year old male driver profile is stripped out, Tiger Watch actually shows a significant softening in the market, with rates down 3%".
Looking at the wider picture, car insurance premiums were up some 1% versus 12 months ago, with double digit price increases recorded for younger female motorists as last December's EU Gender Directive continues to bite. Overall, car insurance rate increases are at well below half the rate of inflation.
This softer market is in turn is leading many drivers to accept renewal prices rather than shopping around. Tiger.co.uk's spokesman warned drivers against complacency: "Whilst renewal rates may look acceptable to motorists, often showing only a modest or nil increase in premium, we would still recommend all shoppers to at least benchmark their prices by taking 5 minutes to run a quote through Tiger.co.uk's car insurance comparison site".