09/06/2011

Vehicle rental could rise if age discrimination banned

The impact of banning age discrimination in the motor industry would be a sharp increase in premiums for hiring vehicles, it has been claimed.

According to the British Vehicle Rental and Leasing Association (BVRLA), imposing such legislation would mean higher insurance costs for young and inexperienced drivers would have to be shared out among all customers.

The organisation estimates as much as 30 per cent could be added to the price of car or van rental, with the sector potentially forced to pay over £34 million extra a year as a result of such a change.

It is calling for an exemption from the proposed law because of the cost and administrative burden it represents, with statistics required to justify higher charges for younger drivers.

BVRLA chief executive John Lewis asked: "Costs for our vehicle rental companies and their customers will rise and no-one will benefit - where is the logic in that?"

A UK insurance policy tends to be more expensive for young drivers and those who have only just obtained their licence, with a decision in March by the European Court of Justice banning preferential rates from being offer to female motorists.

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