Motorists may see an increase in their car insurance premiums if a proposal for a new Equalities Bill is passed.

According to a report by the Association of British Insurers (ABI), although some motorists could benefit from reduced insurance premiums if the bill is passed, a majority of car insurance customers however, will find that they may end up paying more for their cover.

At the moment, younger drivers are considered ‘less experienced’ and are more likely to be involved in accidents and are therefore expected to pay more for their insurance. Older drivers over 80 are also paying more for their insurance.

However, the new bill, which is calling for insurers not to take age into consideration when providing insurance policies, suggests that all drivers will have to pay an equal amount regardless of their age and gender.

Simon Douglas, director of AA Insurance, commented: "An unintended consequence of applying age equality to car insurance will be a reduction in premiums for a few at each end of the age range but an increase for the majority."

Nick Starling of the ABI said: "The insurance industry is committed to treating people fairly, and is opposed to unfair discrimination. The government, organisations that represent older people and the insurance industry agree that premiums should reflect individual risk."