Driving Is Expensive If You're Elderly - Here's Why & How To Get Cheaper Premiums
June 2006
If you're an elderly driver or a member of your family is an elderly driver, this article explains the problems you'll discover when trying to find car insurance and some useful advice on what to do.
Some Background Information
- There were 550 serious accidents last year where the driver was over aged 70 and where driver was either killed or badly hurt, reports the Institute of Advanced Motoring
- That statistic represents 8% of the national total of 7,035 similar accidents
- This means that the over 70's's have more, very serious accidents per mile than any other sector of the population
- The view is supported by the Association of British Insurers whose research shows that drivers aged over 70 are 13% more likely claim on their insurance than the drivers aged between 40 and 50
As the number of elderly drivers will double during the next ten years, this represents a problem for elderly drivers and their families - not to mention the insurance industry, police and indeed all of the emergency services!
Premiums Start To Rise Considerably At 60+
You can probably predict the response from the insurance industry. Many insurance companies already reckon that drivers over 80 are as high a risk as the under 25's - and charge premiums to match! Some are even progressively loading premiums once the driver reaches 60. Then at 70, you'll find that many insurance simply refuse to offer cover.
Norwich Union and Esure won't quote after 70 and by the time the driver reaches 80, the field narrows to specialised insurers who insure elderly drivers. Help the Aged and Age Concern both market policies that have no upper maximum age. Cornhill only accepts new policyholders up to 84 but if you've been insured by them for a few years, there's no upper age limit. RIAS and Saga are also pleased to consider older drivers.
As the price of car insurance is based on historical claims experience, a 75 year old male driver can expect to pay at least 33% more than if he were aged 50. By the time the driver reaches 80 the premiums hit boy racer levels! So if you're in your early 50's keep smiling at the lowest premiums you'll ever experience - they won't last forever.
Steps To Get Cheaper Premiums
But there are some simple steps that older drivers, and indeed all drivers, can take to reduce the likelihood of them having an accident and thereby making themselves more insurable. It's often more about those little things and being alert to likely problems. For example -
- Car parks are a breeding ground for small accidents. Knowing that take more care
- Reversing also is a major problem for the older generation so tend to go for parking spots where you can drive straight into, then when you have to reverse out it won't be into a confined space
Many of the policies for older motorists contain special provisions designed to assist them. On Saga's policy for example, ex company car drivers can use any no claims record they'd built up and if a couple are insured and the main driver decides to quit driving, then the spouse can take over the no claims record. Other policies also provide full insurance cover for anyone who takes over driving in an emergency. Cornhill will even payout £250 if the DVLA stops you from driving for health issues associated with age.
So the ultimate secret to getting cheaper insurance rates is not to have any accidents. Of course, major ones cannot often be helped but it's the small ones and in turn the small claims that will start to rocket premiums over the years.
Michael Challiner
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