UK car insurance gender discrimination to be ended
The difference between car insurance rates for male and female drivers will soon be history thanks to the new non-discriminatory rules.
It seems that the traditional discrimination between male and female drivers will end very soon thanks to the European Court of Justice, which has approved the ban on price discrimination and set a three year period for the insurance companies to comply. This is certainly good news for male drivers, especially the younger ones, who are traditionally charged with higher premiums, and also means that female drivers will be subjected to higher premiums as a logical move by the insurance providers to split even the costs in order to comply with the new rules.
The debate over car insurance price discrimination has been a long and heated one. Traditionally male drivers were charged with higher premiums because they were more often involved in accidents if compared to female drivers. And knowing that the insurance providers deal only with risk factors when calculating their rates as a result female drivers were always getting better rates then men. There are a lot of explanations of why female drivers are less risky then men behind the wheel. Male drivers tend to be more aggressive on the road, driving faster and taking more risks. And this of course leads to more accidents and insurance claims filed by men. So, in fact the math behind such discrepancy in rates for different genders can be understood.
Still, knowing how the EU acts regarding any type of discrimination this car insurance feature was set to become the subject for discussion sooner or later. And what may look like a call for justice from the lawmaker and political point of view will certainly give the insurers a bit of a headache when deciding how to comply with the new rules. Because the usual methods of calculating insurance rates for different groups of drivers will have to be reviewed in order to exclude gender discrimination among customers.
Now it depends on how the insurance companies will choose to review their rate calculating methods in order to avoid price discrimination. One thing's for sure, the insurance companies won't let the new rules affect their revenues in any way. So it's very likely that they will simply even out the extremes. This means that young male drivers will be charged with lower rates whereas adult female drivers will get higher premiums as to compensate the shift in rates for other car owner groups. And that's the price we have to pay for eliminating discrimination.