Car insurance costs for young women set to rise

February 18, 2011

insurance

An equality ruling by the European Court of Justice on the cost of insurance means that young women can expect to face a rise of up to £1,000 on their car insurance premiums, The Telegraph reports.

The Strasbourg-based court has ruled that it is unlawful to calculate insurance costs based on gender, meaning that the standard industry practice of charging young male drivers far higher premiums will have to change.

Young women are expected to fare the worst from the change – currently they pay much lower car insurance premiums than their male counterparts because they are deemed to drive more safely and present less of a risk on the roads.

In future, young women can expect to pay significantly higher premiums – perhaps up to £1,000 more every year – while costs for male motorists should decrease slightly in line with the new equality ruling.

At present, women between the ages of 17 and 22 currently pay an average of £1,682 per year for car insurance, while young men in the same age range pay £2,750.

Statistically, the data is stacked against young male drivers. They are twice as likely to make a claim on their car insurance than young women, as well as more than 10 times more likely to be involved in a serious accident and 25 times more likely to commit a road traffic offence during their first three years of driving.

While the court ruling will have the greatest impact on young drivers, it is also expected to have a smaller effect on older motorist who have traditionally enjoyed closer gender parity on insurance costs.

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About Jodi Mullen

Jodi Mullen is a Team Leader in the Media Architecture department at LBi bigmouthmedia and is responsible for delivering innovative link-building strategies that combine external content strategy with elements of blogging and social media. Prior to his time at LBi bigmouthmeda, Jodi worked in online media in an editorial role while moonlighting as a blogger.

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  • http://www.financialferret.com Financial Ferret

    Although if they ruling is in favour and that is a big if as it can open a can of worms, is it fair to discriminate on post code for example? Then yes i agree womens premiums will go up but i dont for one second believe that mens premiums will go down, Insurers will just use this as an excuse to make more moeny from their customers.
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