Cheap car insurance for women could be a thing of the past following December of this year, with a ruling from the European Court of Justice translating to an additional £362 being added to the car insurance rates women pay in order to comply with anti-discrimination laws.
The new ruling says that men, who are often charged more for cover by car insurance companies because they are more likely to be involved in a crash, are not to be charged more than women solely because of their gender. Critics described the decision as ‘madness,’ protesting that women should not be charged higher rates for being safer drivers than men.
John Woodcock, labour transport spokesman, called on ministers to defuse the ‘insurance timebomb’ faced by women drivers, urging the Government to take steps to limit the ruling’s impact. Labour analysis discovered that in order to bring women’s rates into compliance, female motorists would likely see an increase of around 24 per cent to their rates on average, while men would see a decrease of around 9 per cent.
As it stands now, men under the age of 22 pay around £2,750 a year for car cover, while a woman of the same age would only pay around £1,682 for the same level of cover. The reason for this is that men in this age group are statistically proven to get into serious crashes ten times more often than women, twice as likely to make a claim against their insurance, and a staggering 25 times more likely to commit driving offences.