Bedford Driving Lessons

The court is expected to rule that calculating car insurance based on gender is unlawful. Young women will be hit hardest by the ruling – they currently get cheaper deals than men of the same age, because they are considered a ‘safer risk’. Typically, a woman aged 17-22 currently pays just £1,682 a year in motor insurance, compared to a young man who pays an average £2,750. Figures show that young men are twice as likely to make a car insurance claim and 10 times more likely to be in a crash involving serious injury than young women. Young men are also 25 times more likely to commit a traffic offence within their first three years of driving. The AA said that although the anticipated ruling would result in young men’s premiums dropping slightly, the key effect would be a near doubling for young women’s premiums. Simon Douglas, director of AA Insurance, said: “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. According to the company, the use of gender in calculating insurance risk has been a ‘thorn in the EC’s side’ for many years. The AA believes that the current use of gender for determining premiums is technically illegal, although the UK has enjoyed derogation based on evidence of the its risk-based approach to insurance. “My fear is that the European Court of Justice will no longer tolerate such exceptions and the UK will have to toe the European line,” said Mr Douglas. Added an AA insurance expert: “Insurers may look to use other risk factors as a proxy for gender – for instance occupation or vehicle type – but it isn’t clear to what extent this will be permitted if it constitutes a form of indirect discrimination.”  More