Insurance Companies Forced Into Gender Equality

Women are being urged to check their insurance policies before the new ruling comes into force next month which will ban firms quoting prices based on gender.

Insurance companies have been very forceful in trying to prevent this change for the past few years however due to new legislation this is a mandatory option as of the 21st December 2012.
Some insurers predict that women’s premiums for their car hire could rise by at least 25%.

From 21st December 2012 insurance firms in the UK will be restricted from taking gender into account. Currently women pay less for their cover for cars, so the rise in women’s premiums is to bring the prices in line with what men are currently paying.

According to the Department of Transport, male drivers under 25 were involved in more than 24,000 accidents last year, compared to just over 14,000 for female drivers under 25.

It is great news that the insurance companies are finally getting in line with gender equality and not basing their prices on what sex we are. However some women are arguing that women, should not have to pay an additional 25% on top of their premiums, and that men should pay a little less so that the premiums rates for men and women could be on more of an even keel.

Male drivers can expect to see their premiums drop slightly however don’t be expecting huge drops as this is very unlikely to happen.

If your insurance coverage is due to expire after 21st December 2012, insurers are advising it may be cheaper to cancel your policy prior to this date and sign up for another year at the cheaper prices before this date. Do be aware though that you may be subject to a fee if you do this it might also affect your no claims bonus.