Rise in car insurance premiums could be double

Thu, 05 Mar 2009

Car insurance premiums could double in the near future if the Equalities Bill extends to cover the sale of insurance, according to the AA .

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

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

The warning comes as a result of a report produced by the Association of British Insurers (ABI) into age and insurance. The ABI claims that restricting the use of age by insurers when it comes to policies would be unnecessary, unfair and restrictive. The ABI's director of general insurance and health commented that insurers only used age where relevant and that restricting this would affect all customers through higher premiums and less choice.
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