Young women could face 25 per cent rise in car insurance, warns ABI

Thursday, 17 March 2011

The Association of British Insurers (ABI) has warned young women to expect a significant increase in car insurance following the recent European Court of Justice (ECJ) ruling.

Due to come in from December 2012, the ECJ decision means that gender assessment can no longer be used when determining car insurance, and research revealed young women under 25 could see an increase of up to 25 per cent in their premiums.

Malcolm Tarling, media relations officer at ABI, announced that the organisation is against the judgement because it is bad for consumers and insurers, and decreases the competitive market.

He said: "It will affect motor insurance, where young females tend to pay less than their male counterparts.

"It will include life insurance because women tend to live, on average, longer than males and tend to pay less for their insurance."

The expert added that it is up to individual insurance companies how they implement the judgement.

Recently, the decision received criticism from all sectors of the insurance industry.

 Posted by Rick Malone

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