British female motorists are decidedly not looking forward to increased car insurance rates as a result of the March ruling by the European Court of Justice that goes into effect next year barring gender differences as a basis for determining risk, experts say.
The result of a Belgian consumer group, the case worked its way through the courts this past March, when the group argued that the gender equality policy of the EU forbade car insurance companies to provide discount car insurance for women but not for men. Young female drivers had been thought of as being not as high risk as other groups prior to this, as statistical analysis revealed that this class of drivers seemed to be less likely to be involved in car accidents.
However, their male counterparts aged 25 and younger were found to be 10 times likelier to become involved in a traffic collision. This meant that insurers would charge younger men much higher premium prices in order to offset the heightened risk.
A recent Association of British Insurers research study found that once the new ruling goes into effect in December of next year insurance costs for young female motorists will rocket by 25 per cent on average. Male motorists in the same age range may see their premium prices ease off slightly in comparison to today’s figures, the research survey also found.
In addition to car insurance policies, annuities, medical insurance, and life insurance will also be affected by the new changes. Pension incomes may be reduced in some situations as well, industry experts say.