Parents concerned over EU motor insurance rules

| November 21, 2012 | 0 Comments
Parents concerned over EU motor insurance rules

Many parents are concerned they will no longer be able to afford to insure their child’s car when new European gender equality rules come into force next month.

Thirty-two per cent of the 1,000 parents surveyed by insurer Aviva said they might have to stop their payments as a result of the ruling.

From 21 December, insurers will no longer be able to use gender as a factor when pricing insurance contracts.

Traditionally, young female drivers have paid less for their car insurance than young male drivers, who are considered a greater accident risk.

After the new rules are implemented, the Association of British Insurers expects premiums for young men to fall by 10 per cent on average, while young female drivers could see their premiums increase by up to 25 per cent.

However, more than 60 per cent of the parents surveyed by Aviva thought the new rules will cause premiums for their children to increase, while just 8 per cent thought their premiums will fall.

The survey suggests that consumers are confused about the implications of the changes.

A third of parents surveyed by Aviva said they planned to swap their child’s car for a less expensive model and 44 per cent said they thought they would have to increase their contribution towards their child’s motor insurance in order for them to keep driving.

Less than half of the parents surveyed had heard of the Gender Directive and only 20 per cent said they were confident they understood the changes.

Steve Treloar, retail director at Aviva, said: “Parents are clearly worried about the impact of the new legislation and our research shows there’s a lack of understanding about what impact the new Gender Directive changes will have.

“While young drivers are most likely to see a change in their premiums when the EU gender directive comes into force, parents are also likely to notice a difference if they have young drivers included on their own motor insurance, although the potential increase or decrease is likely to be a lot less.”

The Association of British Insurers has published guidelines on how the gender ruling will affect members of the public.

A recent survey by AA Insurance also found a lack of awareness among drivers about the Gender Directive, with more than a quarter of drivers unaware of the forthcoming changes.

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