Consumers warned of equality bill insurance risk

Date: 04/07/2008 14:00

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Following the publication of the new equality bill, the Fair Investment Company has warned that people could see their travel, life and car insurance premiums rise.

Commenting recently, James Caldwell, director of the financial services provider, has said that the new laws will mean that insurers will have to rethink the way that policies are offered to older consumers.

Using the example of changes to car cover policies, he explained: "Companies will no longer be allowed to charge young male drivers more for their car insurance, despite the fact that they are statistically proven to have more accidents."

He added that as a result, those currently categorised as lower risk could see themselves paying inflated premiums as the pricing structure plateaus over all groupings.

In an effort to keep costs down, Mr Caldwell advised consumers of the need to shop around for cover.

Elsewhere, a report published by the group has found that for 57 per cent of Brits, price was the most important determining factor in choosing car cover.

InsureandGo searches the car insurance market to find affordable cover that suits customers' requirements.

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