A new gender ruling preventing providers from calculating insurance costs based on gender has been described as unfair.
AA Insurance noted young female drivers are likely to endure the most sizeable premium increases following the introduction of the European Union changes, with prices for this demographic climbing by as much as 30 per cent.
Simon Douglas, director of AA Insurance, claimed car insurers are stepping into the unknown as a consequence of the alterations, with providers being forced to reevaluate how they consider all aspects of risk.
These include the model of the car, the age of the driver, their occupation and where they live.
Mr Douglas noted it is still early days for such matters, adding: “Some insurers have been offering gender-neutral policies since mid-November and have already made some quite large adjustments and we will see more of the same.”
The changes are likely to result in a significant shakeup of the industry, especially as men are ten times more likely to be killed or seriously hurt in a car accident than their female counterparts, which traditionally resulted in young women paying premiums that were as much as 40 per cent cheaper than men’s.