Vehicle news
21/02/2011
Cheap car insurance and EU non-discrimination laws
Discussions taking place at the EU may mean that UK car insurance premiums will soon face the threat of being increased by 50%. Quoting an expensive premium or, on the other hand, giving cheap car insurance just because of an individual's gender may soon be illegal for all motor insurers.
At the end of the official ruling, which is to be finalised on March 1st 2011 at the EU Court of Justice, a decision will have been made as to whether this new law is to come into affect.
Speaking on the possible car insurance price changes, a spokesman for a leading insurance company said he anticipates "premiums to increase".
A ruling in favour of the non-discrimination laws would mean that car insurance quotes for both men and women drivers might change. The Association of British Insurers says "this will be extremely detrimental to UK consumers".
Women's cover may rise by as much as £1,000, whereas men, who are generally known to be more of a risk behind the wheel of a car, and who currently pay an average of £2,750 in motor insurance, may see only a slight decrease.
Women motorist's only pay £1,682 on average at the moment, but it is thought that rather than men's insurance decreasing in price to have parity with women's insurance costs, women's cover prices will increase greatly instead.
People who are purchasing their first car in the near future are being advised to wait until after the ruling has taken place, as the cheap car insurance they've found may not be the same price after March 1st. Plans suggest that any changes decided upon will come into immediate affect for all vehicle cover holders.