Higher premiums for the ladies?

Major changes could be afoot which will have a dramatic effect on motor insurance premiums. The European Court of Justice (ECJ) has finally announced that it will deliver judgment in the Test Achats case on 1 March 2011. This case challenges the legality of a European Directive which permits insurers to use gender as a risk factor when setting premiums and benefits under policies.

The implications are immense and would effectively mean UK insurers would no longer be allowed to use differential pricing of insurance policies for men and women in comparable situations.

Women under 21 especially could be significant out of pocket as their premiums offer differ by many hundreds of pounds from their male counterparts.

I’m interested in your thoughts.