East Midlands MEP Urges Women to Check Car Insurance Policies

Emma McClarkin, Conservative MEP for the East Midlands, is urging women to check their car insurance policies and to consider renewing policies before a new EU ruling comes into effect on the 21st December. According to industry estimates younger women drivers in particular could see an escalation in their insurance premiums.

The ruling in the European Court of Justice means that car insurance companies are no longer able to take gender into account as a key consideration when deciding on a person’s car insurance premium. This means that in spite of research showing that younger women drivers have fewer accidents than their male counterparts, this will be ignored when calculating insurance premiums from now on.

According to the Association of British Insurers (ABI), women drivers could see their premiums rise by up to 25% after December as a result, with younger women being particularly hard hit.

Miss McClarkin commented:

“This rise is expected to hit up to three quarters of all female drivers and I would encourage younger women in particular to check their car insurance renewal dates, and to consider renewing policies before the law comes into effect on the 21st December.

“As younger women tend to have few accidents than younger male drivers, to date insurers have been able to offer the women lower pricing, reflecting the lower risk. Now insurers will not be able to offer this differentiated policy. There appears to be a general consensus that car insurance prices for certain women drivers will rise significantly as a result, and I am concerned that people are not aware that this cut-off date is imminent.

“I don’t think the ruling is sensible, it throws into question the whole theory of insurance pricing which tries to match premiums to expected risks. I would be interested in hearing from anyone with feedback on whether the price of insurance premiums have indeed risen and how this ruling has affected them. Check your policy before Christmas.”