Young women drivers buying car insurance for the first time will get a worse deal from the end of 2012 year, following an EU ruling.
The ruling, by the European court of justice, means insurers will no longer be able to use the sex of the driver as a factor to determine whether someone represents a bigger risk in insurance terms. The accident figures though – do seem to show that women are a lower risk.
Uk figures ahow that a male driver under 21 is twice as likely to have an accident than a woman under 21.
But – as a result of the ruling – Men under the age of 25 are now likely to see premiums decrease by an average of 10%, and in some cases 25%.
Hopefully this will not result in more road deaths. (The Association of Police Officers in the UK in 2005 noted that the biggest killer of young women in Britain is their boyfriend’s and male friends’ driving.)
Car insurance premiums for women under the age of 25 are expected to rise by an average of 25% by the end of 2012, but by up to 60% for the youngest female drivers, which could translate into an extra £500-£1,000 a year for some.
The new rules may result in some insurers pulling out of the young driver market altogether, thereby reducing competition and pushing up prices further.
Women who already have a motor insurance policy may be able to escape premium hikes — because the new rules will not apply to insurance policies that are already in place