Women drivers could see their insurance premiums soar by as much as 24 per cent from 21 December, according to comparison site Confused.com.
The EU’s Gender Directive will come into force on this day and means that insurance companies will no longer be able to vary premiums according to the policyholder's gender.
Confused.com believes that this will cause premiums for women to rise by an average of £299, while women under 25 will fork out on average £1,546 – up from £1,247 in November this year.
Females in central London aged between 17 and 25 are likely to be hit the hardest, with the average premium set to cost £2,599 - a rise of more than £500.
Head of car insurance at Confused.com, Gareth Kloet, said that while the insurance market is currently very competitive, this could change when the new regulations kick in. “The EU gender directive, which takes effect on 21 December, looks likely to spoil things, bringing uncertainty into the market once again and is likely to result in different insurance companies adopting different strategies to gain and retain the best business.”
Other areas of insurance affected by the EU Gender Directive include life insurance and annuities used to convert pensions into an annual income.