With the recent ruling over gender discrimination on car insurance by the European Union, many drivers are wondering whether such legislation will soon apply to other demographics, ensuring that everyone pays the same premiums for their insurance.
Young men automatically have higher car insurance premiums than their female counterparts, simply because males are more likely to experience motoring accidents. However, the European Court of Justice ruled that the exemption of car insurance from gender discrimination legislation should end, and from December this year, all motoring policies must be gender-neutral and offered at the same price. Drivers are worried that this will send the insurance premiums of young women sky high.
If this policy can apply to different gender demographics, does it not follow that the European Court could place a similar ruling on other groups – like the difference in car insurance premiums for over-50s? And how would this affect motorists over the age of 50?
Age brings experience
Older drivers who opt for an over-50s car insurance policy benefit from lower premiums as they are likely to have more experience behind the wheel and therefore take a more sensible approach to motoring. However, this is not always the case. Someone may qualify for an over-50s car insurance policy based on their age alone, but if they have only just passed their driving test, age alone does not necessarily make them a safer driver than someone half their age who has been motoring for five years or more.
How would this affect over-50s drivers?
When it comes to the EU gender ruling, the Treasury estimates that women drivers aged up to 45 will have to shell out an additional £920 million each year for their cover. However, it is not all bad news, as men in the same age group are predicted to collectively save £620 million. Due to the fact that over-50s currently pay less for their insurance than their younger counterparts, making all premiums the same would likely see the insurance costs of this demographic rocket, while younger drivers will pay slightly less – however, as in the case of gender, it would be unlikely to balance out.
Over-50s car insurance has many benefits
However, as of yet there is no legislation in the pipeline to change the rules on how much different age groups are charged for their insurance premium. This is great news for older drivers, because there is no doubt that going with an age-specific insurance policy holds many monetary benefits for them. Because over-50s drivers will generally experience fewer car accidents than younger motorists, insurance specialists that cater specifically for older individuals can pass these savings onto their customers. It also means they can provide added benefits that other insurers might not be able to. For example, Staysure offers free windscreen cover as standard as well as a free courtesy car should yours go in for repair.