Car Insurance For Older Drivers

An investigation by Which? has revealed that, despite being safer drivers than someone 40 years their junior, the older driver is being quoted disproportionate greater car insurance premiums.

car insurance premiums for the elderly may be higher than they should beThe report showed that drivers in the age range of 81 to 85 were being hit the hardest as far as car insurance premiums were concerned. Someone of that age was receiving a quote ranging from 50% to 74% more than a person in the age range 41 to 45. This is despite the fact that the older person is much less likely to claim on their policy but, should they do claim, it only costs an average of 2% more.

Those drivers in the age range of 76 to 80 are potentially paying more than they perhaps should be as claims submitted by this age range are, on average, 12% less than someone claiming in the age range 41 to 45 but the higher age range are being quoted premiums that are anything between 9% to 23% more than someone in the lower age range.

In the age range 61 to 85 the quoted premiums were sometimes lower but they were greater than the relevant risk posed for people in that age range.

Interestingly, Which? established that the older driver has a reduced selection of car insurers who will consider insuring them. They looked at 30 of the top car insurance companies online and discovered that 21 out of 30 have a maximum age limit for any new clients with 14 of them not prepared to take on new clients over the age of 85.

There are 1.5 million people who are over 85 years of age who will not be able to arrange car insurance with just under 50% of these 30 car insurance providers.

Which? spoke with the Association of British Insurers (ABI) about the above who said: ‘Our figures on average premiums paid by those over age 80 show that they are on average 3% higher than those for 41 to 45 year olds, which reflects the increased claims risk older drivers represent.

‘Obviously this is much less than the 50% to 74% Which? quotes and may well be because the Which? percentage range reflects what older drivers were quoted by comparison websites and not what they actually paid for their insurance cover.’

Paul Davies, insurance expert with Which? responded: ‘We disagree with the ABI and think there is a clear correlation between prices quoted and the premium you end up paying. Millions of people now use comparison sites to arrange their car insurance and the quotes we received will reflect what many consumers actually pay for their cover.’

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