Vehicle news
14/02/2011
Gender and cheap car insurance policies
Having cheap car insurance based on your gender could soon be a thing of the past according to the Association of British Insurers (ABI). Women who have managed to keep their insurance costs down because of their sex's more favourable road accident statistics, could soon find that their costs are being pushed up by a quarter.
Explained in a letter in the Telegraph, board members of ABI were told to expect a decision by the European Court of Justice (ECJ) which would mean that using a person's gender to determine the rate of their car insurance may soon be made illegal.
The letter also stipulated that based on the outcome of this decision, some women may find that the current contract they are on could be affected by this change immediately.
The Acting Director General at the ABI said, "After careful consideration, our firm advice is that member companies should make the necessary preparations for a judgment by the ECJ that as a general principle differences in premiums and benefits in insurance contracts based on gender are illegal."
In the meantime there are still a number of companies which advertise their cheap car insurance exclusively to women because on average they cover fewer miles than men, as well as causing fewer major car accidents.