London: Millions of women drivers in the UK could have to pay an extra £362 (Dh2,089) a year for their car insurance after a ruling by European judges, it emerged on Tuesday.
The increase follows a decision that men cannot be charged more for their policies even though they are more likely to have a serious crash.
The ruling, described by critics as "madness", means that from December 21 women drivers — although generally safer — will no longer be able to access cheaper car insurance rates because of their gender.
Labour transport spokesman John Woodcock said female drivers face an "insurance timebomb" and called on ministers to curb the impact of the ruling.
Analysis by Labour found that women could end up paying an extra £362 a year, around £30 a month. A Treasury analysis revealed that women of all ages would see their premiums increase by up to 24 per cent on average. Young men would see theirs fall on average by 9 per cent.
More likely to crash
Younger women will be hit particularly badly.
A woman under the age of 22 pays around £1,682 in car insurance while a young man is charged an average of £2,750. This is because men under 22 are ten times more likely to have a serious crash and 25 times more likely to commit a driving offence.
Woodcock said: "At a time when motorists are already being squeezed by record fuel prices, women will be dismayed that out-of-touch ministers are not lifting a finger to defuse the insurance timebomb heading their way from Europe.
All insurance products will be affected. For life insurance, men could see a 10 per cent fall in costs, while women's rates could rise by as much as 20 per cent as they live longer.
