Last year it was announced that women will have to pay the same as men for their car insurance after a ruling by the European Court of Justice.
As it stands women pay less for their car insurance premiums compared to men, which is set to change from the 21st December 2012.
Women are set to pay an extra 24% a year as a result of the new laws compared to men who are expected to see a 9% decrease. It is also expected the rise in insurance premiums for women will cost the UK around £1 billion.
Experts believe there could be ways around the new ruling, such as lowering car insurance premiums for cars that women typically drive such as a Mini Cooper.
However the Government have said the answer to the problem for women could be with Telematics-based car insurance. This type of insurance uses a device to monitor driving behaviour such as acceleration, braking, speed, cornering, what type of road the driver travels on and at what time of day. It also allows drivers to log in online to monitor their driving and the information will then be sent to the insurer to calculate their insurance premium.
An advantage of the small device which is fitted to a car is that it can prove to insurers that a motorist can drive responsibly and therefore they would be a low risk to insurers.
If Telematics-based car insurance proves to be beneficial many insurers could see it being compulsory to encourage safer drivers throughout the UK.
Labour MP John Woodcock commented: “The ban on insurance by gender means women will need to find different ways to prove they are safe, but currently not enough insurers offer new black box technology that helps safer drivers get lower premiums.”
Ian Donaldson, Managing Director of Autonet Insurance commented: “Female drivers will see an impact on their car insurance premiums. Using the device that tracks a driver’s ability could help female drivers and is something that may become compulsory in the future.”
Earlier this month we reported on the change in laws for females named Women to see a dramatic increase in their car insurance. Click the title to read.
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By Amanda Bainbridge