Women drivers are warned they will see dramatic rises in insurance premiums ahead of gender legislation due to come into force at the end of the year.
According to research from the Association of British Insurers, women under the age of 25 will be hard hit, with average rises of 25 per cent. The EU laws mean insurers will no longer be able to take sex into account when giving quotes. On the flip side, younger males may benefit.
Women could also see life premiums rise by as much as 20 per cent, as insurers will no longer be able to take account of women's greater average longevity, of around five years compared with men. This, though, will benefit women looking to convert a pension pot into an annuity. The ABI said women could expect to scoop an annuity 6 per cent higher, but men could see theirs fall by 8 per cent.
"An annuity is a once-in-a-lifetime purchase that should never be rushed. Those approaching retirement may want to seek advice sooner rather than later," said Otto Thoresen, the ABI's director general.
Earlier this year, the IoS revealed that some insurers were changing how they quoted ahead of the law's implementation on 21 December.Reuse content