Insurance premiums 'could skyrocket'
Car fleet managers could face significant hikes in their insurance policies if a government passes the Equalities Bill next year, it has been claimed by the AA.
Age has long been a crucial factor in determining the risk a driver poses, and both younger and older drivers face higher premiums than middle-aged drivers.
However, the new Equalities Bill - if extended to the sale of car insurance - could prevent car insurance companies from charging different premiums based on the age of a driver.
This could lead to a significant hike in insurance premiums for car fleet managers, as middle-aged drivers who drive to work will no longer be able to enjoy cheaper insurance than drivers aged under 21-years-old, for instance.
Simon Douglas, director of AA Insurance, said: "An unintended consequence of applying age equality to car insurance will be a reduction in premiums for a few at each end of the age range but an increase for the majority.
Mr Douglas added that the chances of older drivers or inexperienced youngsters making a claim are far higher than the chances of middle-aged drives, suggesting that insurance premiums should be priced to reflect such discrepancies.
