The AA warns car insurance premiums set to double
Car insurance premiums could soon go up to almost double the price found in the current car insurance market the AA has warned. This is dependent upon the outcome of the Equalities Bill.
According to the Insurance department of the motoring giant, age and sex are both factors that affect risk and enable the insurance industry to set its car insurance prices competitively, but fairly.
There are concerns about the potential impact on buyers of car insurance, if the Equalities Bill, due during the 2009/2010 session of parliament, extends to the sale of insurance.
Simon Douglas, director of AA Insurance, says:
“An unintended consequence of applying age equality to car insurance will be a reduction in premiums for a few at each end of the age range but an increase for the majority.
“There is a significantly greater likelihood of a claim being made especially by young and inexperienced people. Similarly, as age advances, the likelihood of being involved in a collision increases.”
Age was the topic of a report published on 2 March by the Association of British Insurers. Simon Douglas also points out that the lowest risk is presented by drivers between 45 and 65, of both sexes.
Douglas adds:
“Removing age discrimination could well double premiums for the majority of middle-aged drivers, of both sexes.”
You may be able to save money on your car insurance or car hire through promotional codes offered by many insurance and car hire companies online.
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