Friday 21st December 2012 | 13:39
DCMS: Jo Swinson on new rules for insurance
From today , insurers will no longer be allowed to consider the gender of individual customers when calculating insurances premiums due to a new ruling by the European Court of Justice (ECJ).
Minister for Consumer Affairs and Minister for Equalities Jo Swinson said:
"This change from Europe is disappointing especially in these tough times when budgets are stretched. Insurers have no choice but to comply with the European Court of Justice's ruling, but it means that for car insurance women are likely to face higher premiums and it could hit young women drivers particularly hard. So my message to women is simple: don't take this lying down. Do your homework, shop around and nail the best deals. For motor insurance, new drivers might also consider taking extra qualifications like Pass Plus which can build driving confidence and cut insurance costs, and telematics policies which reward good driving behaviours with lower premiums.
"We'll be keeping a very close watch on this over the coming months to make sure the insurance industry is doing everything it should to ensure it minimises the impact for customers. I spoke with the Association of British Insurers earlier this week to urge their members to ensure consumers do not get a raw deal. We agreed to meet in three months to discuss the changes once we can see the impact of this ruling.
"Additionally, the OFT has the mission of making markets work well for consumers and could consider any evidence put to it that there were market problems as a result of this change."