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Why December 2012 is doomsday for many British drivers

For doomsday believers, 21 December 2012 signifies the end of the world. For millions of female UK motorists however, it marks the demise of cheap car insurance premiums.  An impending gender neutral ruling made by the European Court of Justice is set to drive up female car insurance costs by as much as 25%.

The ruling will mean that car insurers will no longer be able to take gender into account when calculating their premiums.  It’s a highly contested piece of legislation that’s been debated for years and long opposed by the insurance industry.

The new legislation is destined to impact younger lady drivers most and this has triggered a mass search among young women for more affordable insurance options.  But is it really possible to find a better deal simply by scouring the marketplace?  The simple answer is "yes".

Statistically speaking, women have always been a lower car accident risk than men. Although they’re involved in a similar number of incidents as men, the annual cost of their associated repairs is significantly lower.  It’s this fact that has afforded women lower premiums in the past…but what now?

The market is currently awash with deals specifically designed to attract female drivers who are looking for a pre-deadline discount. This means that now is the perfect time to switch car insurance providers.

Nobody will truly know the extent and impact of this ruling until 21 December 2012 has passed us by, but one thing that’s practically guaranteed is a shift in dynamics for the insurance industry as a whole.  As premiums and policies become ever more competitive, so too can consumers become more empowered, playing one quote off against another to get a better deal.

Famous money-saving expert Mr Martin Lewis offers UK drivers the following advice: "If your renewal is due now, great. Ensure you get a cheap policy that effectively locks in at current discriminated prices for a year. If you’re not at the renewal stage, then consider whether you can cancel your current policy and sign up for a new twelve month one. Many providers will refund you for the unused part of the policy if you haven't claimed, though they will probably charge an early exit fee. If there are costs, it's a punt as to whether it's worth it or not."

But what do these developments mean for male motorists?

Male motorists now stand to see a 10% reduction in their insurance premiums as a direct result of the same ruling. Female drivers will now effectively pay a cross subsidy for male drivers on their insurance premiums.

Whether young or old, male or female, motorists from all walks of life can click here to learn more about the options surrounding insurance.