Insurance for women news
06/03/2009

Cheap cover may no longer be available

The Association of British Insurers (ABI) has warned that cheap car insurance for women could become a thing of the past if Government plans to eradicate age discrimination come into force.

Statistically, the riskiest drivers to insure are the over 85s and young drivers aged 17-21 years old and they are therefore charged the highest car insurance premiums.

If the Equalities Bill is implemented, with regard to the provision of goods and services, millions of low risk drivers will end up subsidising high risk clients, the ABI has said.

Previous discussions were held in Whitehall regarding insurers charging lower rates to women. At that time insurers successfully argued that the risk differences between men and women were fundamentally apparent and this should therefore be reflected in their insurance costs.

Men have fewer accidents than women, but they tend to be at higher speeds with greater claim costs.

Nick Starling, of the ABI, said, "Insurers only use age where it is relevant, and restricting their ability to do so would rebound on all customers, through higher premiums."

Malcolm Tarling, also of the ABI, said, "The age discrimination legislation may be well-meaning, but it creates unintended consequences. At the end of the day, what we are assessing is risk.

"And in this respect age is a factor."

He added that the industry won the argument over the relative risk between men and women drivers which enables motor cover providers to offer cheap car insurance for women. He now hopes ministers will listen to reason over age.