Car insurance to rise by 11% for young women after European ruling

 
 

Car insurance to rise by 11% for young women after European ruling

Young women face a rise in the cost of their car insurance by 11% from next year due to European rules which ban firms from pricing according to gender, according to new research.
Young women face a rise in the cost of their car insurance by 11% from next year due to European rules which ban firms from pricing according to gender, according to research.
 
German insurance association estimated that young women motorists, currently perceived to be at a relatively low risk of accident, will see their insurance costs rise by more than any other group Photo: Alamy
They estimated that young women motorists, currently perceived to be at a relatively low risk of accident, will see their insurance costs rise by more than any other group.

Previous figures have suggested that the ruling could add about £400 to the annual cost of car insurance for a young woman.

The latest research, carried out by Oxera, a firm of independent consultants, also found that, conversely, high risk drivers, such as young men, would be likely to get cheaper premiums.

The rules change on December 21 next year after a ruling by the European Court of Justice in March that it was illegal to set premiums based on the idea that either sex was more likely to crash.

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