Car insurance is going up by 11% for young women after rule of European
Based on new research, young women would face a rise in the cost of their car insurance by 11% from next year because rule of European which has banned firms from pricing according to gender. German insurance association predicted that young women motorists, currently considered to be at a relatively low risk of accident because their insurance costs would rise by more than any other group.
A study of the German insurance association, the GDV, has estimated that it was the effects of standardizing premiums for both men and women. Previous figures also had suggested that the annual cost of car insurance for a young woman could rise of £400.
The researchers have found that, on average, women could see life term insurance premiums increase by around 30% or more, men could know a reduction in pension income from annuities of around 5% or more; while young women could see motor insurance premiums increase by 11% or more.
The study stated that the changes would stop people saving for old age. Michaela Koller as the director general of the CEA, the European insurance and reinsurance federation has said that perhaps the ban on gender in insurance pricing had a number of potential unintended negative consequences for consumers, insurance markets and society more generally.
The study has proved that gender is one of the factors which have a clear impact on the risks to be discussed in such products as term-life, motor insurance, and annuities. He added that the European insurance industry would obey by the ruling of the court but the implications of that ruling for consumers and insurers have to be understood.
