Insurers are warning that young women could have to pay an extra £1,000 a year for car insurance following a ruling by European Court of Justice next month.
According to statistics from motor insurance companies, young men are twice as likely to make an insurance claim and 10 times more likely to be in an accident involving serious injury than young women.
The court is expected to rule that calculating car insurance based on gender is illegal. Young women, who currently get cheaper deals than men because they are considered a ’safer risk’, could see their insurance bills rise by as much as £1,000 a year.
Simon Douglas, director of AA Insurance, commented: “This will be particularly bad news for young women who are proven to present a much lower risk to insurers and at present, pay premiums that are up to 50 per cent cheaper than their male peers. I expect premiums to increase substantially for them, while they will probably fall a little for young men.”