Experts have warned that the EU has driven the final nail into the coffin of discount car insurance for women, thanks to a ruling which could have deleterious effects on road safety.
The Treasury has made its fears known that requiring car insurance companies to charge women the same premiums they charge men could not only make it more expensive for female drivers but also lead young male motorists to buy faster cars with the extra cash. The new ruling by the European Court of Justice was made in order to enforce gender equality, yet statistical evidence exists that young male drivers are ten times likelier than their female counterparts to be involved in serious road traffic accidents.
An analysis done by the Treasury revealed that not just young female drivers would feel the bite of higher car insurance rates. Indeed, the research showed that women from all age groups would see average rate hikes of as much as 24 per cent
However, young male drivers would experience a nine percent premium price reduction on average. Males 25 years of age and younger, who on average pay more than £2,000 for an annual insurance policy, could have an extra £188 a year – yet female motorists in the same age class could experience an increase of £326 on their average annual premium price of £1,360.
When all is said and done, women from all walks of life and all ages could see their insurance premiums increase by a collective £900 million, while men could experience a collective £600 million drop.