New EU rules going into effect at the end of this year spell the end of discount car insurance for women, insurance experts say.
A European ruling on gender discrimination in regards to formulating car insurance rates is scheduled to come into force on December 21 of 2012. The new regulations will result in massively increased costs for women, who currently pay much less for their motor car insurance than men due to statistical evidence pointing to their lower accident rates.
Women’s groups and campaigners have criticised the decision, especially in light of this statistical data, claiming that the new rules effectively penalise women for driving safer than their male counterparts. The irony is that the changes are being made in order to bring equality to the sexes, even if this means women having to pay the same expensive rates as men.
Treasury analysis has revealed that the new rates will be about 24 per cent higher for women. Men will receive a small respite, with their premium pricing dropping by around 9 per cent – with the end result being that women are predicted to see their rates increase by an average of £362 on an annual basis.
Association of British Insurers’ spokesperson, Malcolm Tarling, said that the new gender-based insurance ban spells bad news for consumers in the UK, even as the country’s insurance industry has explored ways to oppose the ban. With insurance premiums going up by as much as 100 per cent over the past five years, according to the AA, any increase to insurance costs are particularly unwelcome by harried motorists.