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EU ruling increases cost of car insurance for women

EU ruling increases cost of car insurance for women Image

Younger women drivers are set to see the cost of car insurance rise by several hundred pounds at the end of this year when new European rules are introduced in the United Kingdom.  The new ruling prevents insurers from discriminating on the basis of gender in the setting of insurance premiums in spite of the fact that female drivers are far less likely to be involved in road accidents, including crashes.  

In 2011 the Daily Telegraph revealed that insurers had been told that this new ruling was set to become law when the judgement was made by the European Court of Justice (ECJ).  In addition to increasing the cost of insurance for women - while having no effect on the price of an extended auto warranty - the ruling also lowers annuity rates for men, which means that millions are also set to be in for less pension money during retirement.  

Labour transport spokesman John Woodcock has demanded that the government take action in order to try to mitigate the worst affects that will be caused by the new ruling, saying that, on average, women will end up having to fork out an additional £382 per year for insurance.  The truth, however, is that younger female drivers will be facing an even steeper increase, forced to effectively pay higher premiums to reflect the risk companies feel is poised by aggressive young male drivers.

"This gender ban is disappointing news for UK consumers and something the UK insurance industry has fought against for the last decade" says Malcolm Tarling of the Association of British Insurers.

Author - Michael Barclay
 

Insurance  12/03/2012 14:00:00



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