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Gender Equality

Women drivers could see their motor insurance premiums rocket under controversial EU moves to stamp out gender discrimination. Insurers would be forced to ignore gender when setting their rates, ending the current situation under which women tend to pay less than men because they are judged safer drivers.

The EU proposals aimed at eradicating sex discrimination are supported by the Equal Opportunities Commission.

Andrew Briscoe, managing Director of AA Insurance Services said yesterday, "Women of most ages have long benefited from cheaper insurance premiums than men, due to the fact that they present less financial risk to motor insurers. If insurers were forced to comply, they would have to increase premiums for many women, who would be penalised by subsidising the premiums for more risky, male drivers by the very law designed to help them."

Mr Briscoe said the key issue was whether using gender statistics as part of the pricing process would be judged discriminatory under the EU directive.

At present, a 17-year old male will pay £3,806 to insure a Ford Focus - £1,368 more than a female of the same age.

The Association of British Insurers said men under 30 have a 10% higher frequency of claims than women and the average cost of their claims is 25% higher.

The EU proposals have been put forward by European social affairs commissioner Anna Diamantopolou, A Greek socialist. Backers of the draft directive hope it will be approved by the European Commission in July.