Equal opportunities? Women face £362 increase in car insurance following EU ruling

Published: 13/03/2012

It is estimated millions of female drivers will have to pay on average £362 a year more for car insurance following a ruling by European judges last week.

Currently female drivers benefit from lower premiums as their male counterparts are ten times more likely to have a serious road traffic accident and 25 times more likely to commit a driving offence.

However the recent judgement means women will no longer be eligible for cheaper car insurance rates because of their gender. Industry experts are predicting younger women drivers will bear the brunt of the ruling as they will end up paying similar premiums to the so-called “boy racers”.

Currently a female driver under 22 pays approximately over £1000 less than male drivers of the same age. However, come December, young women will see a significant hike in their premiums whilst young men will enjoy an average drop of 9 per cent.

Labour transport spokesman, John Woodcock, is fearful of the repercussions:

“At a time when motorists are already being squeezed by record fuel prices, women will be dismayed that out-of-touch ministers are not lifting a finger to defuse the insurance time bomb heading their way from Europe.

“Premiums for women are currently less because they tend to have fewer accidents.”

Labour is encouraging every insurance company to offer drivers at least one “black box product”. The boxes allow motorists to prove their safety skills by recording how they drive. Safer drivers could then be rewarded with lower premiums.

Content correct at time of publication