Monday 21 April 2014

Women face higher motor premiums but men benefit as EU bans gender discrimination

THE cost of motor insurance will rise by as much as €300 for young women from today, because of new rules banning gender discrimination.

But young men are set to gain from lower premiums - despite being involved in a greater number of expensive road accidents.

New EU regulations mean that from today, insurers and life companies will no longer be allowed to use gender when pricing financial products, including motor insurance, life cover and annuities.

The effect of this ruling is that private insurance products which differentiate by gender on price or benefits will be banned.

Young female drivers will be the worst affected by the new rules, with premiums rising by 24pc on average across the eight insurers reviewed by AA Insurnace.

Premiums for women aged 30 will rise by an average of 9pc, compared to average increases of 2pc for women aged 70.

Broker said there would be increases in premiums for female teenage drivers of up to €300.

But there will be savings in the region of €2,500 on motor insurance for teenage male drivers, according to an analysis by Chill Insurance.

Traditionally women enjoyed lower premiums because although they have as many accidents as men, they tend to be smaller ones.

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