Both insurance and annuities see rise due to changes
San Francisco, CA -- (SBWIRE) -- 02/01/2013 -- The new European “gender neutral” rules have done much to equalize the cost of insurance for men and women. These new rules have had the greatest effect on young women. The 17- and 18-year-old women have seen their rates go up by as much as 50pc. On the other hand the men have seen their rates drop by as much as 12pc according to a study conducted by uSwitch.com.
These new rules went into effect as of December 21 of 2012, since that time insurance companies have not been allowed to base their rates or the coverage benefits on whether the driver is male or female.
The new rules have mainly affected the younger age women in Europe. Middle aged women between the ages of 36 and 40 have a slight increase to their rates of only 2pc.
The personal finance expert for uSwitch.com, Michael Ossei stated "Young women who have just passed their test may well wish that Britain had never stepped foot inside the European Union. A 50pc rise in premiums could have a devastating effect on newly qualified women trying to get on the road. But there's not quite cause for young men to jump up and down in celebration. Despite the shock rise in female premiums, 17- and 18-year-old men still pay the most for their car insurance. It's our hope that the relentlessly high premiums do not discourage young people from learning to drive."
The price of insurance is not the only thing that has been affected by the new gender rules. Research by Moneyfacts last week shows that the pricing for annuities has also been changed. The payments for women’s annuities have increased by 2.9pc, while the pricing for men have dropped by an average of 2.7pc.
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