New rule implementation by ECJ

Earlier, it was quite an easy process to find cheap car insurance policies based on gender. But after December 2012, when a law for car insurances took place, everything has got changed. This rule was made by the European Court of Judgement (ECJ). This law states that insurers can not consider gender as a reason for difference in cost calculation of insurance policies. Before this rule came into practice, women used to pay 50% less premium than men. On an average, a lady driver used to pay a premium of £2050 and a male driver used to pay around £3090. After implementation of this rule, cost of car insurance for women has increased rapidly. Now, gender is not an important factor anymore in calculating the cost for car insurance. There are still some other options left, by using which female drivers can get a cheaper car insurance policy.

·         The type of car you own is also a major factor in deciding the payable amount as the premium. The premium price is directly proportional to the size of car engine.

·         Cars from expensive manufacturers will cost a much higher premium because their parts will cost more in repairing.

·         The distance covered by your car in a year is also an important factor which affects your insurance premium.

·         In theft cases, security standards of your locality are deciding values.