EU to Women: Sorry, No More Cheaper Car Insurance Insurance firms ordered to stop sex discrimination By Rob Quinn, Newser Staff Posted Mar 2, 2011 3:26 AM CST 2 comments Comments Women drivers under 29 are around six times less likely to crash than their male counterparts. (Shutterstock) (Newser) – European women will no longer enjoy cheaper car insurance because of their sex's safer driving habits. A European Union court has made it illegal for insurance companies to base premiums on gender-based risk assessment, CNN reports. Millions of women drivers, who previously enjoyed car insurance up to 50% cheaper than their male counterparts because of male drivers' much higher accident rate, now face a hefty hike in premiums. The ruling is "a setback for common sense," complained one member of the European Parliament. "It is a statistical reality that young men have more accidents than women so it should be reflected in their premiums." The ruling, however, isn't all bad news for women: insurance companies will no longer be allowed to charge women higher prices for retirement annuities based on their longer life expectancy.