After ruling that car insurance companies are no longer allowed to set insurance premiums based on gender differences, the European Court of Justice’s decision could lead to discount car insurance for young drivers – provided they are male.
Car insurance rates in both the UK and in Ireland will now need to be based on more equitable risk assessments, independent of gender, following the recently-issued judgment. Car insurance is just one of the commercial activities affected by the new ECJ ruling.
The reasoning behind the ruling was to determine the legitimacy of offering identical commercial products to customers with differing prices based solely upon the purchaser’s gender. However one car insurer remarked that regardless of gender it will still be aiming to provide cheaper car insurance to their younger customers.
Female drivers in the UK have traditionally been seen as having a smaller risk factor than their male counterparts due to accident statistics indicating that men tend to get themselves into accidents much more often. Both consumers and insurers have accepted that this leads to more expensive insurance for men as a result.
However gender-based pricing is no longer to be permitted in the wake of the Court’s March ruling. This has led some commercial industry marketplace experts to predict premiums will begin to rise precipitously for female motorists.
In some cases, younger male drivers could start to see their insurance rates plummet to come into line with their female counterparts. However, the Association of British Insurers said that in order to preserve revenues, female motorist premium prices would most likely increase in order to maintain court-mandated equality.
Irrespective of their customers gender or age, Quinn Direct has however gone on record that they will make all attempts to keep premiums down for motorists.