New EU equality rules will drive up insurance premiums for women
A ruling made at the European Court of Justice (ECJ) last year will drive up insurance costs for women at the end of 2012, according to Lovemoney.com.
The ruling which was passed in a bid to ban gender-based risk assessment will overlook years of research and statistics said the financial advisory website.
“Frankly, this is a crazy decision, as it ignores nature, as well as throwing out hundreds of years of insurance statistics. It is a fact that, on average, women live longer than men. It is also a fact that male drivers have more accidents than female motorists, especially when they first start driving,” said Lovemoney.com.
The law will come into effect on December 21 when it is expected that insurance premiums for women will sky rocket.
In theory, men’s premiums should become cheaper but insurers’ preference for a hike in premiums is more likely, said the website.
Younger female drivers are expected to be hit hardest in the move.
“Nevertheless, thanks to the ECJ's absurd decision, with effect from December 21 this year, gender can no longer be used to underwrite car insurance, life insurance and pension annuities. What this means is that a driver's premium cannot be affected by his or her sex, as this is 'indirect sexual discrimination',” said the website.