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Equality bill 'could have implications for older car insurance customers'

30th June 2008

The government's proposed age discrimination laws could mean lower car insurance premiums for older drivers.

Last week, the government published proposals to end age discrimination in the UK. As part of the plans, equity minister Harriet Harman said that insurance companies would be forced to remove unfair age restrictions and premiums on their products.

The Guardian has now reported that the proposed laws could have some implication for car insurance customers aged over 75.

It noted that while it was likely older drivers would continue to pay higher car insurance premiums, insurers would in the future be compelled to explain the reasons behind the prices.

Nick Starling, the Association of British Insurers' director of general insurance and health, stressed that its members did not discriminate against older drivers.

"The government, organisations that represent older people and the insurance industry agree that insurance premiums should reflect the risk presented by individual consumer," he said.

"Legislation, no matter how well-intentioned, could have the unintended negative consequence of forcing some insurers to withdraw certain products altogether, reducing competition and availability and pushing up prices for all age group." ADNFCR-1602-ID-18661903-ADNFCR