Insurance ruling 'not common sense'

05/07/11

By Helen James

A minister has said he will argue for an amendment to a European directive that might mean women can no longer get cheaper car insurance policies.

Treasury minister Mark Hoban said a European Court of Justice ruling that could end women-only policies "goes against the grain" of most people's view of equality.

He pledged to lobby for changes to the Gender Directive adopted by the European Commission and to get "legal certainty" about what it means for UK insurers and people with policies. Mr Hoban said the Government thinks the ruling will only affect new insurance and related finance products taken out on December 21, 2012 or later.

The court ruling that car insurance costs cannot be based on gender means the UK's Equality Act may have to be changed. Mr Hoban said he would consult interested parties on those changes.

Women who are younger than 25 stand to see their premiums go up by as much as 25%, the Association of British Insurers has suggested.