Have you been driving for many years without an accident or making a claim? Do you feel you’re paying over the odds for your car insurance based on the risk you represent? Then there’s a chance you are…
Despite car insurance premiums falling, on average, 16.6% in the last year, according to the AA Index, our members have been contacting us with some eye-watering quotes, many of whom have never made a claim.
The industry’s argument for their high premiums for older drivers is that are more likely to make a claim than younger drivers because they have slower reaction times, poorer eyesight and hearing, increased propensity for confusion, or haven’t driven for a long time.
High premiums for older drivers
But the statistics tell a different story. According to the latest available Association of British Insurers’ data, a 61 to 65-year-old pays almost twice as much in premiums for their level of risk (claims frequency multiplied by claims cost) than an 18-21-year-old.
The data also shows that, in general, the older the driver, the fewer claims they make.
Little’s changed since the last time we looked at car insurance premiums two years ago. Back then, we found that in all of the age groups we analysed (the 61 to 65s, 66 to 70s, 71 to 75s, 75 to 80s and 81 to 85s), the premiums quoted were higher than the risk the drivers in these groups would seem to merit.
Our research found that despite 81 to 85-year-olds being less likely to make a claim, the quotes they received were 50% to 74% higher than people aged 41-45. And despite drivers aged 76 to 80 submitting claims that cost 12% less on average than those aged 41 to 45, the premiums they were quoted were 9% to 23% higher.
We want to hear your experiences. Do you feel you are being unfairly penalised in the price you pay because of your age? How does your insurer justify the premium they charge you?
Yes (60%, 705 Votes)
No (21%, 253 Votes)
Don't know (19%, 224 Votes)
Total Voters: 1,182