Bad news for women: later this year, they’ll almost certainly be facing even higher insurance costs when a new ruling from the European Court of Justice banning gender discrimination goes into effect.
Yes, the legislation is supposed to eliminate gender-based discrimination when it comes to differences in insurance prices charged to women over men. The problem is that women are the ones who were reaping the benefit, with most men paying more than their female counterparts when it came to premiums – and the gap was widest between young men and women.
The new rules, which go into effect on 21 December of this year, will no longer permit car insurance companies from using gender of customers as one of their statistical tools for calculating car insurance rates. Women have statistically been much safer drivers than men in the past in such that they are less likely to be involved in an accident – and when they are involved, the accidents tend to be less serious.
However, this will no longer be ground for discounting insurance rates for women past the 21 December date, and many insurance experts predict that providers will be forced to raise rates for female drivers by a substantial amount to bring them into line with their male counterparts or risk being in non-compliance with the new rules. Some insurers have begun to look into new ways to offer savings to customers without having to rely upon gender-based risk assessment, leading to a massive uptick in interest within the telematics-based insurance industry, as the technology reports driver behaviour in real time in order to assess risk.