European Court rules against gender bias

Date: 1/3/2011

A ruling by the European Court of Justice against gender bias will have an impact on the car insurance industry, along with several other sectors.

This week, it was announced that from December 21st 2012, all premiums and benefits must be calculated and offered on a unisex basis, although exceptions from this rule may be permitted by member states in some cases.

In terms of how this will affect drivers, female car owners may see their insurance premiums go up, as traditionally they are often charged less than their male counterparts to cover their vehicle.

Commenting on the news, the British Insurance Brokers' Association (Biba) revealed that young female drivers will "almost certainly" see their premiums rise from the end of next year.

Steve Foulsham, Technical Services Manager at the organisation, said that insurance cover for women could increase by a typical 25 per cent, but the rise may be as much as 50 per cent or more for some individuals.

Meanwhile, Graeme Trudgill, Biba Head of Corporate Affairs, said: "The ruling will have a significant effect on the insurance industry which has used the system of risk-based pricing to award discounts to lower risk drivers like young females - who are statistically safer drivers."

Posted by Mary Treen