Equality bill could lead to higher insurance premiums

By Tom Farley, Fri 4 Jul 2008 - Published in Car Insurance

New measures unveiled by equalities minister Harriet Harman last week to replace hundreds of different pieces of legislation with one equality bill could have a negative impact on the insurance industry, according to Fair Investment.

Director James Caldwell said being unable to impose age restrictions on insurance policies will have knock-on effects for those buying car insurance, travel insurance and life insurance and may well result in higher premiums for people who are considered low risk.

Commenting on the impact on car insurance premiums Mr Caldwell said if insurers are unable to charge extra for young male drivers who are "statistically proven to have more accidents", other customers will have to pick up the tab.

He added: "We are urging consumers to remember the importance of shopping around when buying car insurance. Settling for a renewal quote could mean missing out."

In other news, research by swiftcover has found that drivers in London and the Midlands are at greater risk of car crime than people resident elsewhere in the UK.

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