Insurance Gender Discrimination is Illegal

02/03/2011

Insurance Gender Discrimination is Illegal

Reg Rix, managing director of Netcars.com, offers his thoughts on the European court of justice ruling that gender discrimination is illegal when it comes to setting insurance premiums and the impact on the motor industry:  

 

“Today’s ruling, which will no doubt come as a blow for female drivers, offers a potential window of opportunity for car dealers to consider their marketing policies and target audience priorities when it comes to used car stock, particularly with younger drivers in mind.

 

“According to research by the Association of British Insurers, young people will be particularly affected by the verdict. The ruling will push up premiums for women under 25 by an average of almost 25 per cent, while male drivers in the same age group will benefit from a typical 10 per cent reduction in their insurance costs.

 

“Although the ruling will not officially be brought into force until 21st December 2012, some insurance companies may start to phase out any current ‘discrimination’ criteria based on gender, earlier than this.

 

“With this in mind, it is likely that women will think twice about buying newer cars with bigger engine sizes due to the increased insurance costs. Dealers should be prepared to offer advice and a selection of suitable alternatives for females looking to downsize to avoid skyrocketing costs.

 

“This is a real opportunity for dealers to be seen as a reliable source of information for female drivers and to show that they are really listening to what women want when it comes to buying their next car.”

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