Young females to face added debt woe?

Young females already experiencing debt difficulties could find their monetary problems worsen should a new European Union (EU) ruling come into effect.

Confused.com has note the EU Gender Directive – expected on March 1st – will decide if it is legal for insurers to charge different premiums based solely on gender.

The website noted girls currently pay less than their male counterparts as they are less likely to make expensive claims.

However, should the alteration come into effect, ladies stand to suffer considerable financial repercussions as they absorb the difference between the rates they enjoy now and the costs endured by men.

Mike Hoban, marketing director at the portal, said: “If the rules are changed, the result is likely to be a price rise for female drivers as they subsidise their male counterparts, who are responsible for more accidents, although it’s unlikely that male premiums will fall, at least in the short term.”

The industry figure noted that – because insurers may not be able to take gender into account – they are likely to become more cautious in their approach to setting premium prices.

This could result in drivers of all ages being hit with further increases, he went on to point out.

Brendan Barber, general secretary of the Trades Union Congress, recently claimed young people in the UK bore the brunt of the recession and are continuing to suffer from a financial perspective to this day.

The expert said this still seems to be the case, despite the nation being in a supposed state of economic recovery.

By Joe White