Insurance & You

Thursday, 21 June 2012

Gender and car insurance

A ruling by the European Court of Justice (ECJ) made it illegal for car insurance companies to include gender in their risk pricing formulas used to calculate annual premiums. This significant change in the car insurance industry came into effect on 21 December 2012. It resulted in annual premiums rising for a number of UK car insurance customers, especially young women, and existing RIAS policyholders were slightly impacted.

Couple on laptop

The law change was brought about to eliminate discrimination, which the ECJ felt was being demonstrated by various insurers applying different premiums, policy terms and benefits to men and women. For instance, young women historically tended to pay much less for their motor insurance than young men, based on proven statistics - but the ECJ sought to level things out to some degree.

As an over 50s motor insurance provider, we worked with our insurance partners during the period leading up to December 2012 and ensured a smooth transition, with minimal disruption to our customers. Since then, we have continued in ensuring that our over 50s car cover products are as fair, transparent and competitive as possible.

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