A crucial decision of EU insurance has ended the gender discrimination and women will have to pay insurance premiums equal to the amount men pay. Reason why men used to pay higher insurance premiums than women before was the possibilities of accidents men met with, were higher than those by women. Men less than 35 years of age are most likely to meet with accidents due to speed driving and as a result were supposed to pay more insurance premiums than women. But today, the new European legislation has removed the gender discrimination equalizing values of men as well as women insurance premiums. Previously, men had to pay around 40% more than women but now they seem to be happy on the changes undergone.
But in other sense, it is going to be tough for people who cannot afford higher insurance premiums. Previously, couples who were not able to afford insurance premiums used to opt for insurance cover only for the wife, so as to save extra on the insurance premiums spent on husband. But in present situations, it would not be possible and rather they will have to toss a coin to decide on who should be insured.
According to the new law, insurance providers would be banned for considering the gender while insuring any individual. This will come into picture 21st December onwards and probably would be a great difficulty for those who cannot afford an insurance cover. Prior to the change, men in the age group of 17 to 22 had to pay an insurance premium of £3,000 while women from same age group used to pay £2,125. Similarly, men who fell in the age group from 23 to 29 paid £1,840 where women in the same age group used to pay £1,200. This was annoying for men as women could save on their premiums and probably party with the savings.
The sudden change seems to be shocking for women of UK, where more than 75% of them don't even know about it. It is estimated that women will see a rise of around £300 in their insurance premiums on an average. But the number may hike to £2,000 for younger age groups. Women whose insurance policy doesn't needs renewal before January 2013 can give a thought on terminating their policy before 21st December in order to save on it.
There are possibilities that the revenue of insurance companies would surge with this change undergone by the EU legislation. The insurance companies have not decided on the pricing of insurance policies but would have to work on it, considering the ban on gender discrimination.