Young women drivers could face a price hike of up to 50 per cent in their insurance premiums, a Shropshire broker has warned.

Previously insurance companies set lower prices for women drivers based on statistics that showed they had fewer accidents than male drivers.

But now, the European Court of Justice has ruled that they can no longer use gender as a means to determine premium rates.

Dave Williams, of Henshalls Insurance Brokers, in Newport and Shrewsbury, said the move would mean young female drivers would see an increase in their motor insurance premiums from December 2012.

"The increase will probably be around 25 per cent, but could be more than 50 per cent in some cases, which is a massive leap for young drivers, particularly in such challenging economic times.

"Insurance companies will now have to re-calculate their pricing strategies ready for the December 2012 deadline, and younger female drivers renewing their policies after this date will probably see a significant change."

Dave said statistics showed the average cost of a claim by an 18-year-old male driver was £4,400 compared to the average claim cost for an 18-year-old female of £2,700.

"Male drivers under 21 are twice as likely to have an accident than a female under 21, and traditionally the insurance industry has used this lower risk factor to offer cheaper premiums to younger women motorists who are statistically safer drivers.

"But now, the female drivers will be paying for the risks their male counterparts will take as part of their insurance premiums. And the ruling will not change anything for male drivers as their premiums look unlikely to reduce much as their risk is still considerable.

"But it's still vital that all drivers have the right insurance to cover their individual circumstances, no matter what the cost, in order to protect themselves and other road users."