Car premiums hit two-year low

Car insurance premiums dropped to a two-year low this month, the latest report by comparison site tiger.co.uk has revealed.

Premiums for October fell 2.7% year-on-year and 3% compared to September.

This continues a six month decline of more than 8% between May and October.

Male drivers benefited most from the upcoming EU Gender Directive, which is due to come into force on 21 December, as their premiums have dropped 11.5% since May, while women have experienced a more modest 4.6% drop.

The Gender Directive means that gender can no longer be used to price risk for car insurance.

But Tiger.co.uk’s commercial director Andrew Goulborn said that the cost of car insurance was variable, and that premiums for young drivers had risen 5.1% for men and 3.7% for women.