European court move on insurance premiums criticised
The ruling by the European Court of Justice that will lead to higher insurance premiums for female drivers has been criticised by the Automobile Association (AA) and the Consumers’ Association of Ireland (CAI).
As a result of the court ruling, a new regime became obligatory throughout the EU from yesterday under which insurance companies will no longer be able to take gender into account when calculating premiums for driving and other insurances. At the moment, young male drivers pay more than women.
AA director of consumer affairs Conor Faughnan last night said it was a “very poor” decision. “There is a fundamental injustice built into it because it prevents insurers from looking at what is a very relevant variable.
“It’s a bit like ordering Paddy Power to give the same odds on Kerry as Leitrim – and all in the name of equality.”
He added that the ruling could see rates rise by anything from 25 to 40 per cent for women under 25. “The good news is that insurers themselves haven’t really got on top of this yet, so the advice is to shop around,” he added.
CAI chairman Michael Kilcoyne was critical of insurers, saying they would seek to capitalise on the ruling.