Young women's insurance set to soar

A new ruling by the European Court of Justice next month could lead to a rise of £1,000 in

The European Court is expected to outlaw gender discrimination when it comes to setting insurance rates in the decision due on March 1.

Currently, young women aged 17-22 have to fork out £1,682 a year in motor insurance on average, compared to a hefty £2,750 paid by men in the same age range.

Young women get cheaper car insurance deals than their male counterparts because they are considered a 'safer bet' by insurers.

Figures show that young women are 10 times less likely than men of the same age to be involved in a crash and 25 times less likely to commit a traffic offence in first three years of driving.

The spokesman for the Association of British Insurers, Malcolm Tarling, said: "We believe this will be extremely detrimental to UK consumers. If insurers aren't able to take into account risk factors, it will have widespread implications.

"Insurers may look to other risk factors that give an indication of gender, for example occupation or vehicle type, but if this is considered indirect discrimination it is unlikely to be permitted."

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