ABI age discrimination report
Car premiums could double if age discrimination for insurance ends
AA Insurance has expressed concern about the potential impact on buyers of car insurance, if the Equalities Bill, due during the 2009/2010 session of parliament, extends to the sale of insurance.
Age is one of several factors, which also includes sex, that affect risk and enables the insurance industry to tailor products precisely and fairly to the individuals concerned. Age was the topic of a report published on 2 March by the Association of British Insurers.
AA comment
Simon Douglas, director of AA Insurance, says: “An unintended consequence of applying age equality to car insurance will be a reduction in premiums for a few at each end of the age range but an increase for the majority.
“There is a significantly greater likelihood of a claim being made especially by young and inexperienced people. Similarly, as age advances, the likelihood of being involved in a collision increases.”