Equalities Bill will Increase Premiums for Most Motorists
Fears will come true for most motorists if the Equalities Bill is extended to cover the sale of insurance policies. According to the AA Insurance most of the drivers will now have to pay higher premiums if age discrimination legislation which is due in 2009-2010 session is extended. The insurance company said that age and sex of the driver affect the premium of an individual as products are designed accordingly.
Simon Douglas, director of AA Insurance, said that with the age equality clause coming into function, those at the end of the age range would benefit but most motorists would suffer from this. Inexperienced and young drivers are more likely to make claims and also elderly people as chances of collision increase. Nick Starling, director of general insurance and health at the Association of British Insurers (ABI) said that insurers use age only wherever necessary but if they are restricted from doing so, majority of the customers would suffer through paying higher premiums and limited choice.
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