March 10th, 2011

Sheila's Wheels, a UK company that offers lower rates for women

Recently the European Court of Justice ruled that insurance companies cannot base insurance premiums on gender. They ruled that setting insurance premiums on the sex of the applicant is against EU equality laws. While equality is often supposed to be the goal this means higher rates for women, who traditionally enjoyed lower premiums.

The reason why women received lower insurance premiums is because they were deemed safer drivers. Seems to make sense to us. Sajjad Karim, a conservative member of the European Parliament called the ruling “a setback for common sense” and “utter madness”.

In recent years female-only insurance companies, such as Sheila’s Wheels, have become prevalent. Known for their lower insurance rates for women, and often creative advertising, it will be interesting to see how they deal with the recent ruling.