Different Insurance Costs ‘Sexist’, Rules Court

Posted: 1st March 2011

The European Court of Justice has ruled that charging men and women different motor insurance premiums is unlawful, despite the fact that the differential in premiums paid merely reflects the cost of the claims history of the insurers.
A spokesman for the AA claimed that the decision could add approximately £400 to the average cost of car insurance for a young woman.
However, of far greater significance is the application of the ruling to pensions. Equalisation of annuity rates for men and women will greatly reduce the annuity rates payable to men. Currently men receive significantly greater annuities than women because of their shorter life expectancy.