The latest news from the motoring world – news that is likely to be hugely controversial  - is that companies offering female-only car insurance could end up being consigned to the scrap heap (no pun intended) due to new laws from the European Court of Justice that stated calculating someone’s insurance & breakdown cover UK policy according to their gender is illegal.

What is even more potentially controversial is that this ruling could end up being applied to already existing contracts, meaning that some women could find that their policy costs are increased by up to 25% once the law has gone through.

Speaking on behalf of the Associations of British Insurers, Acting Director General Maggie Craig stated that ‘After careful consideration, our firm advice is that member companies should make the necessary preparations for a judgment by the ECJ that as a general principle differences in premiums and benefits in insurance contracts based on gender are illegal.’

Various female only insurance and breakdown cover UK companies such as Sheila’s Wheels have become renowned for their unique advertising campaigns and have consequently achieved success in the industry.  Because of the general belief that female drivers are expected to be involved in fewer major accidents, they are able to offer potential lower rates.

No doubt all eyes will remained focused on this particular area to see if the new ruling is confirmed over the next couple of months.  

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