Monday 27 February 2017

Women to avoid car insurance hike

Charlie Weston Personal Finance Editor

WOMEN who renew an existing motor insurance policy may avoid higher premiums following an EU ruling yesterday.

European Commission officials clarified new rules banning insurers from using gender as a risk factor when calculating insurance costs.

The new rules are expected to drive up the cost of insurance for women -- while also lowering the costs for young men.

But now it has emerged that a woman who already has a motor insurance policy may be able to escape premium hikes -- because the new rules will not apply to insurance policies that are already in place.

The ban on gender discrimination will come into force for new insurance contracts issued after December next year, the EU says.

The clarification follows a European Court of Justice ruling earlier in March that said that insurers were not allowed to take gender into account when calculating insurance premiums.

Women pay less for motor insurance because they are statistically less likely to be involved in an accident.

Accountants KPMG have calculated that insurance premiums could rise by as much as 50pc as a result of the March 1 ruling by the European Court.

Irish Independent

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