Is Gender Discrimination Happening In Insurance
Is Gender Discrimination Happening In Insurance
The European Court of Justice has recently ruled against the common practice of issuing rates for service based upon gender. This extends to numerous areas of commerce including the issuance of auto insurance, life insurance and some form of annuities. Set to go into effect in December 2012, these changes could have a dramatic impact on the cost of coverage for both women and men.Women may be subject to an increase in their rates for automobile insurance as high as 25%. This comes in conjunction with a hike in the average cost of life insurance for women of as much as 20%. Men however, will pay less in premiums and could enjoy decreases of as much as 12% for their automobile coverage.When calculating rates for coverage however, insurers must assess the amount of risk that is associated with providing a particular individual or group with coverage. Statistically, women have proven to pose a much lower risk for insurance companies in terms of both life and auto coverage. As a demographic they tend to be involved in fewer accidents, file fewer claims and have a longer life expectancy than their male counterparts. Because of this, they are much less costly for insurers to carry.Many argue that because the risk associated with insuring women has not changed, the prices of coverage should remain the same. While the EC ruling has introduced a measure of equality in this arena, it negates the rationale behind the process of determining insurance rates and the sound reasons for having issued lower prices for female policyholders in the past.One thing that female drivers can do to offset the rising costs of coverage is to begin pricing their policies before the changes take effect. Locking into a low premium now may help to offset the rise in rates significantly. This can be done by browsing online and comparing the rates that are offered by providers who are currently marketing phenomenal offers in anticipation of this change.This ruling comes at a time in which the price of coverage is already rising beyond the limits of affordability. Drivers have seen increases as high as 30% as a result of insurance fraud and increases in personal injury. For young, female drivers, the changes could have a dramatic impact on the ability pay for more comprehensive plans. In fact, some analysts believe that this alteration in the way rates are calculated could have a negative impact on both drivers and the auto insurance industry. Some believe that these changes may prompt younger female drivers to wait longer for the purchase of their first car, while enabling young male drivers to afford higher performance vehicles.A rise in fraud and the numbers of uninsured motorists are also anticipated by some circles. In order to counter the anticipated effects of the changes that are to be instituted by the ECJ ruling some insurance companies may begin to pay more attention to different areas of the typical driver's profile. For instance, occupation and vehicle type may weigh in more heavily than before. Cars that are typically known to be purchased and driven by high risk individuals may now cost even more to insure. Farmers Insurance Scholarships – Unusual Scholarship Programs Demolition Insurance Why Must a Corporation Obtain Key Man Insurance? To high-rise building on fire insurance, the adoption of new rules in Chongqing - high-rise building The Benefits of Air Ambulance Insurance Term Risk Insurance Company Watch Philadelphia Flyers vs Pittsburgh Penguins Online Game Coverage What Kind Of Insurance Does My Business Need? Reasonably priced Well being Insurance A Few Tips To Help Keep Your Family Home Safe Tips On Youthful Motorist Insurance Policy Mileage-Based and Gross Receipts-Based Truck Insurance Packages Wedding Insurance Comparison