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| Version 1 | Version 2 |
|---|---|
| Insurance rules on gender will alter prices | Insurance rules on gender will alter prices |
| (about 5 hours later) | |
| Millions of people will see price changes on their next insurance policy following fresh rules that have now come into force. | Millions of people will see price changes on their next insurance policy following fresh rules that have now come into force. |
| New European rules mean insurers will no longer be able to take a customer's gender into account when calculating their premiums. | New European rules mean insurers will no longer be able to take a customer's gender into account when calculating their premiums. |
| The changes mean that young women may see their car insurance costs rise. | |
| But they could get a better deal when buying an annuity - an annual pension financed by their private pension pot. | But they could get a better deal when buying an annuity - an annual pension financed by their private pension pot. |
| Accident rates | Accident rates |
| The changes, which came into force on Friday, are the result of a ruling from the European Court of Justice (ECJ) in March last year. | The changes, which came into force on Friday, are the result of a ruling from the European Court of Justice (ECJ) in March last year. |
| Premiums must now be "gender neutral", with men and women being treated the same, even if they present obviously different risks to insurers. | Premiums must now be "gender neutral", with men and women being treated the same, even if they present obviously different risks to insurers. |
| Previously, women have benefited from smaller vehicle insurance premiums because they account for fewer accidents. | Previously, women have benefited from smaller vehicle insurance premiums because they account for fewer accidents. |
| "The youngest drivers will be most affected. That is because young men are more than twice as likely to be killed or seriously injured in a car crash than their female peers," said Ian Crowder, spokesman for AA Insurance which monitors quotes across the industry. | "The youngest drivers will be most affected. That is because young men are more than twice as likely to be killed or seriously injured in a car crash than their female peers," said Ian Crowder, spokesman for AA Insurance which monitors quotes across the industry. |
| "Young women aged 17 to 22 typically pay up to 40% less for their cover than young men; well, until now at any rate. In middle age, there is little difference in premiums between the genders." | "Young women aged 17 to 22 typically pay up to 40% less for their cover than young men; well, until now at any rate. In middle age, there is little difference in premiums between the genders." |
| Premiums were dropping by up to 10% for men aged 25 and below and were increasing by up to 30% for the youngest women drivers, Mr Crowder said. | Premiums were dropping by up to 10% for men aged 25 and below and were increasing by up to 30% for the youngest women drivers, Mr Crowder said. |
| 'Shop around' | 'Shop around' |
| An annual pension income - or annuity - that people can buy from an insurance company could be affected by the change. Previously, women's annuities were not so generous as men's owing to their extra life expectancy. | An annual pension income - or annuity - that people can buy from an insurance company could be affected by the change. Previously, women's annuities were not so generous as men's owing to their extra life expectancy. |
| Life insurance and health insurance premiums could also be affected by the new rules. | |
| Prices are likely to change in stages as the new system beds in, and insurers analyse what their competitors are doing. | Prices are likely to change in stages as the new system beds in, and insurers analyse what their competitors are doing. |
| The Association of British Insurers has suggested that people shop around for the most suitable deal, and do not focus solely on price. | The Association of British Insurers has suggested that people shop around for the most suitable deal, and do not focus solely on price. |
| How will these changes affect you? Send us your comments and experiences using the form below. | How will these changes affect you? Send us your comments and experiences using the form below. |