No More Different Insurance Rates on Gender Grounds

Almost quarter of the current female drivers might be affected by a new EU ruling, related to car insurances, which will ban companies to charge different insurance rates to men and women. the ruling is expected to come into force in December 2012.

Under the new ruling the UK car insurance market should comply with the EU Gender Directive. This directive aims in fighting discrimination on gender grounds. Women currently pay much less for insurance than men because statistics show them to be less risky drivers. However, under the new ruling, they will be entitled higher insurance premiums, which could mean that about 13 % of the female drivers may not be able to  cover their insurances and about 11% may be forced to sell their cars.

On the other side, the new ruling will have a positive effect on male drivers, who will be entitled to pay lower cost of their premiums.

According to a survey, carried out by a price comparison website, in order to continue driving about one third of the female drivers have to make serious changes. 17% of them say they will sell their current vehicle and exchange it for one, entitled to lower insurance premiums and 14% admitted they will need to drive less, in order to be able to afford a vehicle.

The website`s representative Michael Ossei said: “Statistically more likely to claim, men have grown used to paying hefty motor insurance premiums, but this is all set to change. From next month men will no longer be penalised for their ‘boy racer’ reputation and will be charged the same as women. For the first time ever, men and women will be driving on a level playing field.

“While millions of male drivers will be celebrating cheaper premiums, female drivers need to brace themselves for significant price rises. It’s more important than ever that they shop around to find the best deal at renewal time – with over 100 providers on the market, there is a big difference between the cheapest and the most expensive quote. A little bit of research will go a long way towards limiting the financial impact of this judgment and not being forced off the road due to cost.”

In addition, this EU Gender Directive is related not only to car insurance, but to all insurance products altogether. That`s why from December, using gender as a base for different pricing will be illegal in any insurance field, including life insurances and pension annuities as well.

As our Recruitment policy and Redundancy Policy are not based on any gender grounds, we believe it will not be a subject of the European Directive, That`s why you can download them without any concerns.