The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Which?Top 5 tips for boosting your travel moneyWhich?But once you're on holiday, making sure you have the right selection of cards in your wallet is crucial to avoid paying unwanted fees on every transaction. Below we highlight the best credit card and prepaid card options. Dynamic currency conversion ...
Telegraph.co.ukRetiring abroad? Here's how to prepare your financesTelegraph.co.ukBefore you take the leap and leave the country you need to have a strong retirement fund behind you that can cope with the extra expenses with which you may be faced and also with the vagaries of currency movements that could affect your funds buying ...and more »
Telegraph.co.ukMonthly fee catch left me with 'debts' on account I never usedTelegraph.co.ukHowever, for the past year and a half I have been getting calls from Santander which have escalated to those from a debt collector saying I owe it money. No more ... Nor were you available to receive confirmation of the account number or a bank card ...
Telegraph.co.ukNew inheritance rules will help expats in the EUTelegraph.co.ukIn the UK, individuals are free to leave their assets to whomever they wish, as long as this is clearly drawn up in a valid will. But most EU member states have some form of forced ... An update on last week's column about the ability for those in ...
Business InsideriZettle just raised €60 million and is getting into shadow bankingBusiness InsiderThen we have more traditional credit scoring. In the UK and Sweden where we've been for a while, I would expect the approval rate to be pretty high." iZettle Lite barber card reader iZettleOne of iZettle's card terminals in action. Unlike traditional ...iZettle, the Square of Europe, raises more cashFortuneall 15 news articles »
Have you met...
Latest Members:


ganool168


Noiajf


mone


AGreen


madashell


Fraser


elhadi

 

General News

Email this story to a friend:

Young women drivers to pay more for insurance following EU ruling

The European Court of Justice ruling will bring to an end the use of gender in insurance pricing. This will have a significant impact on customers and the insurance industry and is almost certain to mean that young female drivers will see an increase in their motor insurance premiums from December 2012.  01-03-2011

Insurers will no longer be able to use the exemption for insurance to base female driver premiums on statistics which show that they have lower accident rates and costs.  The average 18 year old male claim cost is £4,400 compared to the average 18 year old female claims cost of £2,700. 

 Insurance companies will have to re-evaluate their pricing models for implementation by December 2012.   Younger female drivers renewing their motor insurance after this date are likely to see a significant change.

 Steve Foulsham, BIBA Technical Services Manager, said:

“Unisex rates will have to apply for motor insurance with the likelihood of an increase in premiums for females which could typically be up to 25% but in some cases more than 50%.  However it’s unlikely that premiums for male drivers will reduce much as their risk is still considerable.”

 Graeme Trudgill, BIBA Head of Corporate Affairs, said: “The ruling will have a significant effect on the insurance industry which has used the system of risk based pricing to award discounts to lower risk drivers like young females who are statistically safer drivers.  Male drivers under 21 are twice as likely to have an accident than a female under 21.  The industry will have to change its model and effectively females will now pay a cross subsidy for males on their insurance premiums.”

Advice for consumers is to ensure cover is appropriate for their own requirements. Contact a local broker who can search from a panel of insurers. BIBA’s Find a Broker helpline is available on 0870 950 1790 or via website www.biba.org.uk

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks