A study commissioned by the German Insurance Association has revealed that female young driver car insurance holders are likely to see a significant rise in their annual car insurance premiums when a ruling by the European Court of Justice comes into effect in December next year.
The ruling means that it will be illegal for car insurance providers to price annual premiums based on the driver's gender – at the moment women are more likely to receive a cheaper car insurance quote as they are perceived to be at relatively low risk of being involved in a road traffic accident.
The research was carried out by a firm of independent consultants, Oxera, which estimated that female drivers are likely to see a rise of 11% in cover, whereas male young driver insurance holders are likely to benefit from the new ruling.
Although young men are usually considered to be high risk drivers by car insurers, the research has shown that the price of their annual premiums is likely to fall.
It seems that young female drivers will be worst affected by the changes since the report states that previous figures have indicated that young women may have to pay about £400 more for an annual policy.