Anti-discrimination law could double insurance premiums

| March 4, 2009 | 1 Comment
Anti-discrimination law could double insurance premiums

The AA has lashed out at government plans to make age and gender discrimination illegal on car insurance policies.

Premiums could double for some drivers, the AA said, if the Equities Bill, due to be brought to parliament this spring, is extended to cover the sale of insurance.

Age and gender are key factors that affect risk and are vital considerations for calculating fair premiums, the AA said.

Simon Douglas, AA Car Insurance director, said: “An unintended consequence of applying age equality to car insurance will be a be reduction in premiums for a few at each end of the age range but an increase for the majority.

“Removing age discrimination could well double premiums for the majority of middle-aged drivers, of both sexes.”

The AA’s warning follows a report by the Association of British Insurers (ABI) into age and insurance.

Removing age as a factor in insurance policy pricing would be unnecessary and restrictive, the ABI said.

The insurance industry does not need regulating against age discrimination because 99% of older customers are able to obtain motor insurance, the ABI said.

Nick Starling, ABI director of general insurance, said: “Any legislation should tackle genuine discrimination, not insurance where the use of age helps to ensure a wide range of products at competitive prices.”

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  1. Bob says:

    I am glad to see that age and gender are going to be removed from the equation. Just because I am male or young, does not mean I am going to drive like a lunatic. If i were to crash and be the cause of the accident… then fair enough, by all means raise my premiums but the fact of the matter is that the majority are good and law abiding drivers being targeted becuase of our age and gender. As if it isnt already hard enough to get by, insurance prices are ever increasing for the young. Ive seen insurance quotes for over £3000 from majority of insurance companies for a car worth less than £500. its an absolute joke.

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