Equality Bill could push insurance premiums up a gear

03 July 2008 / by Rebecca Sargent
The new measures announced by equalities minister Harriet Harman last week to introduce a Single Equality Bill in place of hundreds of different pieces of equality legislation, could have a detrimental impact on the insurance industry.

James Caldwell, director at Fairinvestment.co.uk comments: "The proposed legislation means that insurance companies will have to re-structure the way they offer policies. They will no longer be able to impose an upper limit when it comes to life and travel insurance, despite there being more risk associated with older consumers.

"Another insurance product that will be affected as a result is car insurance – companies will no longer be allowed to charge young male drivers more for their car insurance, despite the fact that they are statistically proven to have more accidents.

"If the legislation comes into effect, consumers who are classed as low risk by insurance companies will find themselves hit by increased bills as a result. Insurance companies will be forced to pass the extra cost onto consumers as they will not have the same income as they used to from high risk drivers.

"Consequently, we are urging consumers to remember the importance of shopping around when buying car insurance. Settling for a renewal quote could mean missing out." Mr Caldwell concluded.

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