Insurance News Car Insurance Premiums Could Double Says AA

Written by Editorial Team
04 March 2009 / by Rebecca Sargent

Car insurance premiums could soon double if the Equalities Bill extends to cover the sale of insurance, AA has said.

According to the breakdown cover and insurance provider, age and sex are both factors that affect risk when it comes to car insurance, and enables the industry to tailor products fairly.

If it is unable to do this, car insurance premiums will shoot up. “Removing age discrimination could well double premiums for the majority of middle-aged drivers, of both sexes,” AA car insurance spokesman Simon Douglas said.

The warning follows a report from the Association of British Insurers (ABI) into age and insurance. According to the ABI, restricting the use of age by insurers when it comes to policies would be unnecessary, unfair and restrictive.

Commenting, ABI’s director of general insurance and health said: “Insurers only use age where relevant, and restricting their ability to do so would rebound on all customers through higher premiums and less choice.

“Any legislation should tackle genuine discrimination, not insurance where the use of age helps to ensure a wise range of products at competitive prices.

“Our research shows that travel and motor insurance is widely available to older customers. However, we recognise that some people may need more help to find the right policies for them.”

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