Car Insurance Comparison Site Comments On EU Ruling
13th December 2011
Back in March 2011 The European Court of Justice ruled that it will be illegal for insurers to set prices for car insurance based on gender from December 2012.
The case was originally brought to court in March 2011 when a Belgian consumer group challenged the use of gender as a risk factor when pricing insurance policies as it went against the wider gender equality policies within the EU.
Up until then, younger women drivers had been regarded as a lower-risk accident group due to the fact that they have fewer road accidents and therefore are able to obtain lower car insurance costs. Male drivers under the age of 25, on the other hand, are 10 times more likely to be involved in a road accident and because of this their car insurance premiums have been rated higher than their female counterparts.
The Association of British Insurers (ABI) has published research showing that, when the new ruling comes into effect in December 2012, the cost of car insurance for female drivers aged under 25 could increase by an average of 25%, while young male drivers could pay slightly less than they do currently.
It is not only car insurance that will be affected by these changes; the ruling will also have an impact upon the pricing for medical insurance; life insurance and annuities, and it is thought that in some cases it could cause a reduction in pension income.
A spokesperson from popular car insurance comparison site Tiger.co.uk commented, “Our car insurance price monitor Tiger Watch looks at hundreds of car insurance quotes every month and it has been showing that the gap is closing on prices for males and females in their twenties. Insurance companies that until recently have charged young male drivers more for their policies – reflecting the fact that they pose more of a risk – are now having to review their pricing models which is already starting to cause price increases for younger females. As always we would encourage all drivers, irrespective of gender, to use a site like Tiger.co.uk to compare car insurance quotes to ensure you are obtaining the best deal possible for your individual circumstances.”