The new ECJ ruling has created fear among women driver about hike in insurance premium soon, as the benefit on premium they used to enjoy earlier will be ruled out soon. Now the insurer will not be able to use gender for setting premium prices but still age, location and driving history will affect the premium rates.
The companies will now try to set unisex premium rate somewhere between the current male and female premium charges. The female drivers under 30 years might see a rise of 25% in their premium whereas the male motorists might get 10% of cut in their current premium charges. The old drivers will get small change in their premium charges.
The new ruling will come in action by the end of next year but some insurers will change prices to some extent soon, which will be reflected in car insurance comparison site quotes. The short-term change in the insurance premium will enable the insurers to collect higher total premium.
The insurance policies already in action might see an open challenge by both male and female drivers, as both will demand of better terms. The consumers might challenge the policies already in force to get the refund of the premium they have paid already. This grey area of the policies will be decided after the enactment of ECJ ruling.
Even the Treasury and the Financial Services Authority as well as ABI are consulting about the enactment of the law. If the law remains unclear then the court cases regarding the male as well as female drivers will get puzzled, as backdated cases will demand high premium claim for male drivers and the victim will try to push the cases to get high premium claim whereas in female driver cases, they might be delayed for getting more claim amount.
The insurer will look out for alternative ways to charge the risky male drivers by setting the premium prices based on occupation and car type.