The cost of car insurance for women drivers after the new EU ruling comes into play at the end of the year will see the cost of premiums rise by £360 on average, recent treasury analysis has suggested. From the end of 2012 it will become illegal for insurance companies to take gender into account when calculating car insurance premiums.
Until now, female drivers have generally benefitted from lower premiums compared to their male counterparts as statistically, women are involved in fewer accidents on the road and even when they are involved in an incident, the cost of the claim is generally lower than those made by male drivers.
Because females pose less of a risk to insurers, they have enjoyed cheaper insurance costs, however that will all change following the EU ruling shake up. The recent treasury analysis suggests that the cost of car insurance will rise by £362 on average for every female driver as a result, while the worst hit will be young women drivers who are likely to see an even bigger increase.
The treasury predicts that car insurance premiums for women will rise by 24% following the EU ruling, however the cost of cover won’t decline hugely for male drivers as they’re likely to only see a reduction of around 9% after the EU legislation comes into play.
Safety group have warned that the slight reduction in the cost of premiums for young male drivers could lead to more accidents on the roads as these motorists take advantage of the decrease in the rate of their premiums by buying more powerful cars.