A new ruling by the European Court of Justice means that UK car insurance companies will no longer be allowed to use gender as an influencing factor when selling auto insurance premiums. Application details given by both sexes are going to be assessed in the same way and when this data is identical, applicants will be able to pay the same premium. The new ruling comes into effect on 21st December 2012 and car insurance companies have until this date to change their procedures so that the new legislation can be followed.
Who Implemented the Rules?
The new legislation was passed in the European Court of Justice. Following ongoing discussions about European law, which outlaws gender discrimination a basis of price, studies were carried out to see how gender was used to determine car insurance rates. Existing practices that make car insurance cheaper for females are already a point of contention for UK drivers, but European governments will be forced to provide a level playing field for both sexes when car insurance is purchased after the 2012 deadline. The date has been chosen because it represents an exact five years gap since Europeans countries were forced to adjust domestic legislation on a basis of price and gender discrimination.
Why Are The Changes so Important?
Trading equality is a bone of contention throughout Europe at the present time, and the car insurance marketplace has served as a classic example of an uneven playing field. Although accident statistics have largely influenced the way car insurance companies operate, they tend to punish careful male drivers unfairly and the European Court of Justice has taken this into consideration.