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Drastic changes to car insurance


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9 October 2012

ECJ Ruling set to make drastic changes to the cost of insurance

The ECJ has ruled that gender cannot be taken into account by insurance companies when proving quotes and selling insurance. The ECJ further commented that taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination.

The ruling came about following a challenge by a Belgian consumer group that argued that the current insurance practices were against gender equality in line with European principles. The British Insurers Brokers Associations (BIBA) has stated the current average costs for car insurance claims for 18 year olds stand at:

- 4,400 for men

- 2,700 for women

BIBA have also stated the ruling will have a substantial effect on the insurance industry, that have utilised risk based pricing to provide discounts to drivers considered at low risk of an accident such as young females. The unisex insurance requirement is set to start from 21 December this year so as to give insurance providers time to adjust. In the insurance industry women are generally seen as a lower risk to insure however the ruling means women will no longer pay lower premiums than men despite them being statistically safer drivers!

By Rehana Ali, a paralegal at lawdit solicitors that may be contacted at

About the Author

Lawdit Solicitors offer services and advice for litigation, commercial contracts, Intellectual Property and IT legal agreements. We are experts in commercial law with a heavy emphasis on Intellectual Property, Internet and e-commerce law. Lawdit is a member of the International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.

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Article Published/Sorted/Amended on Scopulus 2012-10-23 09:07:19 in Legal Articles

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