Women drivers to be forced to pay more for car insurance

A European court has ruled that insurance companies should not take gender into account when arranging cover.



The European Court of Justice in Luxembourg decided that it was discriminatory for insurers to base premiums on the differences between the sexes.

The new rules will come in to force on December 21 this year.

Currently insurance companies across Europe base cover charges for drivers on the differences in life expectancy and accident statistics, which benefit women.

The judges based their ruling on the Lisbon Treaty, which includes the Charter of Fundamental Rights, and aims “in all its activities, to eliminate inequalities and promote equality between men and women”.

The Association of British Insurers (ABI) believe the courts equality ruling will see women drivers under 26 facing a 25% rise in premiums while men can expect a 10% drop.

MEP Sajjad Karim said the Euro ruling was “utter madness” and a “setback for common sense”.

He continued: “It is a statistical reality that young men have more accidents than women so it should be reflected in their premiums.

“This is a victory for boy racers and a major blow for both democracy and careful women drivers.”

Simon Douglas from AA Insurance said: “The use of gender in calculating insurance risk has been a fundamental principle of the UK’s risk-based motor insurance structure for decades, although it has been a thorn in the EC’s side since 2002.

“The calculation of car insurance premiums based on risk is by definition fair, but is incompatible with gender equality.”

It is not just drivers that will feel the changes as the ruling applies to other forms of insurance too.

The ABI forecasts that for annuities, men approaching retirement could face an 8% cut in rates, while women in a similar position could face a 6% rise.

Similarly for life insurance, men could see a 10% fall in costs, while women’s rates could rise by as much as 20%.

So that's 'Sheila's Wheels' down the swanee then?

Warning this contains bad language - Amateur Transplants version of the Sheila's Wheel ad.

Spoiler: