Motoring news - Women face rising car insurance quotes amid new ruling

Car insurance news - Women may see quotes increase by 11% according to research

Holders of car insurance for women who have previously benefitted from a cheap car insurance quote are likely to see their annual premiums rise after a ruling by the European Court of Justice will make it illegal for car insurance prices to be determined by the gender of the driver.

The German insurance association (GDV) has estimated that female drivers may see their car insurance increase by 11%, and previous figures have indicated that young women could be paying around £400 more for an annual policy.

The new research was gathered by a firm of independent consultants, Oxera, and it has indicated that men are more likely to gain from the ruling as young male drivers, who are usually considered to be a high risk group by car insurance providers, may be able to find cheaper insurance.

Michaela Koller, the director general of the CEA, the European insurance and reinsurance federation, said, "The ban on gender in insurance pricing may have a number of potential unintended negative consequences for consumers, insurance markets and society more generally."

He added, "The European insurance industry will, of course, abide by the ruling of the court but the implications of that ruling for consumers and insurers need to be understood."

Motorists may be able to find a cheaper car insurance quote by choosing a telematics insurance provider which monitors a policyholder's driving habits and offers a renewal quote based on a driver's safety on the road.