Canarian Weekly
30-11-2012, 11:30
New EU rule means they will have to pay the same for car insurance as men
WOMEN have always demanded equal rights – and they will be granted their wish this Christmas.
But female drivers, especially, will not appreciate the nasty shock awaiting them because, thanks to a European Union edict, their insurance premiums will increase by an average of 11%.
Few will even be aware, certainly not in Tenerife, that from 21st December, a new EU “Gender Directive” comes into force.
It means that insurance companies will no longer be allowed to use the sex of a person when setting premiums.
That decision has always weighed heavily in favour of the fairer sex because they are considered to be less of a risk than men – and the figures for claims prove it.
Now, however, the EU’s Court of Justice (ECJ) has decreed that women drivers can no longer look forward to generous discounts.
Basically, it means insurance companies must now charge men and women the same amount, whether for fully comprehensive or third-party cover.
Elena Betes, who runs Spanish price comparison website Rastreator.com, says: “InSpain, each insurance company will adjust its prices according to its customer base, but there will be a single criterion.”
At the moment, the difference between third-party car insurance for men and women in theCanary Islandsis as high at 45%.
However, many drivers in theUK, men and women alike, have already covered themselves by installing “black box” technology in their vehicles.
These devices monitor their driving habits in a bid to cut insurance costs – and British companies are happy to take the results into consideration when renewing policies.
In fact, most firms are advising their clients to take the black boxes on board.
More than 200,000 drivers have now signed up to “telematic” insurance and, in some cases, have halved their premiums.
The British Insurers Brokers’ Association (BIBA) expects the drive to “snowball” once the EU ruling is introduced, with more than half-a-million motorists opting to install the technology in exchange for lower insurance premiums.
While this is a relatively small proportion of drivers, experts predict that take-up will climb steeply over the next decade.
TheUK’s commercial fleet market has already gone overboard for the device, while in theUnited States, where the technology was pioneered, around 80% of new vehicles have black boxes fitted as standard.
The EU changes will affect not only motor insurance but life insurance and annuities as well.
An annuity is a contract with an insurance company to pay you regular income for the rest of your life in return for your pension fund.
Women have traditionally paid less for life insurance because, statistically, they live longer, so there is less likely to be a claim.
They’ll still live longer, but they will soon be forced to pay as much as men for life cover.
Yet men usually get better rates on annuities because they have shorter life expectancy, so insurers have to pay out for less time.
A spokeswoman for Liberty Insurance here inTenerifetold Canarian Weekly: “As far as car insurance is concerned, there’s nothing we can do about it because it is an EU directive.
“But women with existing life cover will not be affected because they will have a contract for so many years. So mortgage and personal life cover, for instance, will remain the same.
“Also we are advising people looking around for life insurance to get a contract sorted out by 20th December, which is our cut-off date before the Gender Directive comes in on the 22nd.”
She added: “Any policies taken out before then will not apply to the new rules and they will add up to big savings over the years.”
More... (http://www.canarianweekly.com/females-face-fees-fear/)
WOMEN have always demanded equal rights – and they will be granted their wish this Christmas.
But female drivers, especially, will not appreciate the nasty shock awaiting them because, thanks to a European Union edict, their insurance premiums will increase by an average of 11%.
Few will even be aware, certainly not in Tenerife, that from 21st December, a new EU “Gender Directive” comes into force.
It means that insurance companies will no longer be allowed to use the sex of a person when setting premiums.
That decision has always weighed heavily in favour of the fairer sex because they are considered to be less of a risk than men – and the figures for claims prove it.
Now, however, the EU’s Court of Justice (ECJ) has decreed that women drivers can no longer look forward to generous discounts.
Basically, it means insurance companies must now charge men and women the same amount, whether for fully comprehensive or third-party cover.
Elena Betes, who runs Spanish price comparison website Rastreator.com, says: “InSpain, each insurance company will adjust its prices according to its customer base, but there will be a single criterion.”
At the moment, the difference between third-party car insurance for men and women in theCanary Islandsis as high at 45%.
However, many drivers in theUK, men and women alike, have already covered themselves by installing “black box” technology in their vehicles.
These devices monitor their driving habits in a bid to cut insurance costs – and British companies are happy to take the results into consideration when renewing policies.
In fact, most firms are advising their clients to take the black boxes on board.
More than 200,000 drivers have now signed up to “telematic” insurance and, in some cases, have halved their premiums.
The British Insurers Brokers’ Association (BIBA) expects the drive to “snowball” once the EU ruling is introduced, with more than half-a-million motorists opting to install the technology in exchange for lower insurance premiums.
While this is a relatively small proportion of drivers, experts predict that take-up will climb steeply over the next decade.
TheUK’s commercial fleet market has already gone overboard for the device, while in theUnited States, where the technology was pioneered, around 80% of new vehicles have black boxes fitted as standard.
The EU changes will affect not only motor insurance but life insurance and annuities as well.
An annuity is a contract with an insurance company to pay you regular income for the rest of your life in return for your pension fund.
Women have traditionally paid less for life insurance because, statistically, they live longer, so there is less likely to be a claim.
They’ll still live longer, but they will soon be forced to pay as much as men for life cover.
Yet men usually get better rates on annuities because they have shorter life expectancy, so insurers have to pay out for less time.
A spokeswoman for Liberty Insurance here inTenerifetold Canarian Weekly: “As far as car insurance is concerned, there’s nothing we can do about it because it is an EU directive.
“But women with existing life cover will not be affected because they will have a contract for so many years. So mortgage and personal life cover, for instance, will remain the same.
“Also we are advising people looking around for life insurance to get a contract sorted out by 20th December, which is our cut-off date before the Gender Directive comes in on the 22nd.”
She added: “Any policies taken out before then will not apply to the new rules and they will add up to big savings over the years.”
More... (http://www.canarianweekly.com/females-face-fees-fear/)