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Womens Car Insurance Article |
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Europe could end cheaper car insurance for women
Under moves by the European Union to ban sex discrimination, cheaper women's car insurance could become a thing of the past.
The European Commission's proposed directive would force UK insurers to set a single price for their insurance, regardless of gender, reports the Financial Times.
The draft document is at an early stage. However, insurers are already becoming concerned, claiming that the costs of complying with a new pricing law could cost the industry large sums and pointing out that women have been proven to be less of a financial risk on the road.
If the European Union backs the plan it would also affect retirement products as women, on average, live longer than men and receive a lower annual income from pension savings than men as a result.
The AA is opposed to any changes to insurance premiums arguing that studies by the company had repeatedly shown that young men posed the biggest risk to insurers.
If the EU proposals go further then other factors used to determine insurance premiums such as postcode, age and occupation could also be ruled out.
The insurance industry is waiting to see if adjusting premiums in response to gender falls under the EU's banner of sex discrimination. If the rules are changed many women could find they are facing much higher premiums to insure their car.
© DeHavilland Information Services plc, 1998-2003
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