EU Sex Ruling Driving Motor Insurance Premiums Higher - February 2011

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. 

Lower Car Insurance Premiums for Women a Thing of the Past?
New EU (European Union) laws could push up motor insurance premiums for women drivers by a staggering 25%.

The European Court of Justice (ECJ) will in the near future rule on whether using a person's sex to calculate their motor insurance premiums breaches equality legislation. UK insurers are bracing themselves for an outcome none of them would wish for. They have been warned that if the legislation is pushed through then it could be implemented as early as March 2011.

If it becomes illegal for insurance companies to use sex to assess risks then lady drivers could find themselves paying the same as their male counterparts for motor cover. It is a statistical fact that young male drivers cause far more serious road accidents!

The Association of British insurers (ABI) have commented that they expect a decision between February and May. the ABI maintains that using sex to calculate risk is ultimately beneficial to consumers. allowing insurers to price premiums correctly.

Motor insurance companies who specifically target female motorists and who insure mainly women will have to consider their pricing policy as they may find more young male drivers buying their policies.

Some car insurers might level their unisex premiums at the rate for male drivers, particularly in the young driver age bands. could this lead to to younger male drivers spending the money they save on their insurance premiums by purchasing faster, high performance vehicles? This in turn will potentially push up the number of claims for this driver category. We will wait for the ruling from the ECJ with baited breath!

ENDS