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Car Insurance Quotes - Is There A Case For Discrimination?

Mar 01, 2011

When it comes to car insurance for teenagers it is quite common for the cost to be much higher for males than for females.  This is because the risk associated with young men is said to be higher as they are more likely to be involved in a serious car accident.  So if you are a young man between the age of 17 and 22, you could face paying an extra £1,000 per year for your car insurance than a young woman of the same age.  Is this really fair?  I’m sure all young men looking for car insurance would not think so.

So how do car insurance companies get away with discriminating against young men purely based on their gender?  Well time could be running out for insurance companies as it is looking likely that the EC may rule that it is unlawful to charge young men more than young women when calculating car insurance premiums. 

While this might sound like good news for young men, it is probably not going to mean cheaper car insurance for them.  What is more likely is that young women will have to pay the same high rates as young men instead.  It is very unlikely that these insurance companies will drop the cost of insurance for young men and the only way to be fair is to charge young women the same price as young men.

So if an insurance company can’t charge more for car insurance based on gender, then how can they charge more for car insurance based on age?  Surely this is discrimination too.  Why do young drivers have to pay so much for their car insurance in the first place?  Well the insurance companies will have an answer to this question because they can argue that older drivers will have more experience on the roads and there is also the issue of more years claim free driving. 

At the end of the day, any way that car insurance premiums are calculated is going to involve some form of discrimination whether direct or indirect.  If you are charged more for being a man than a similar aged woman, this is discrimination but the insurance companies have to use statistics to calculate the risk involved before they can give accurate quotes.  One thing is for sure, there will be no winners if this ruling goes ahead except for the insurance companies perhaps.  Young men may think that they will now be entitled to cheaper car insurance quotes but there can be no doubt that this will not be the case.  What is more likely to happen is that everyone is going to have to pay more to the insurance companies.