Insurance premiums for women drivers in the UK could rise by as much as 24 percent starting December 21, according to comparison site Confused.com.
On this day the EU’s Gender Directive will come into force, which means insurance companies will no longer be able to vary premiums according to the policyholder’s gender.
According to Confused.com, this will cause insurance premiums for women to increase by an average of £299 in the UK, while women aged below 25 will pay on average £1,546 a year on insurance, compared to £1,247 in November this year.
But the hardest hit demographic group will be women from central London aged between 17 and 25, as the average premium is expected to cost £2,599, which represents a rise of more than £500.
According to Gareth Kloet, head of car insurance at Confused.com, the EU’s Gender Directive may affect competitivity on the insurance market. “The EU gender directive, which takes effect on 21 December, looks likely to spoil things, bringing uncertainty into the market once again and is likely to result in different insurance companies adopting different strategies to gain and retain the best business,” Gareth Kloet was quoted as saying by Auto Express.
The EU Gender Directive also affects life insurance and annuities used to convert pensions into an annual income.