Drivers over the age of 70 are being targeted by insurance companies — with many facing price hikes in excess of 50 per cent when they renew their policies.
This is even though many of these customers have exemplary driving records going back decades — and have not made a claim for years.
A Money Mail investigation found that while the over-70s are facing the highest premium increases of any age group, turning 80 is often the trigger point for insurers to suddenly ramp up premiums.
Data compiled by insurance consultant Consumer Intelligence shows that renewal prices for the over-70s are rising above those for the whole market.
In the three months to the end of August, they rose by £63.04, compared with the market average of £46.40.
Premium hikes: In the three months to the end of August, renewal prices for the over-70s rose by £63.04, compared with the market average of £46.40
Dennis Reed, director of elderly campaign group Silver Voices, says inflated premiums are adding to the financial stress suffered by many retired people’s household budgets.
He says insurers know they can dramatically increase premiums for the elderly without falling foul of age discrimination rules.
This is because insurers insist that elderly drivers are higher risk — and that risk should be reflected in the premiums they pay.
Data released earlier this week from comparison website Compare the Market shows car insurance premiums for young drivers have increased by 50 per cent over the past year.
The latest Association of British Insurers (ABI) report shows that, in 2021, the under-25s and over-75s made the highest average claims — although the elderly claimed less frequently.
‘There are strong counter arguments that as people age, they become more careful and risk averse drivers,’ says Reed. ‘Such customers should see premiums lowered, not raised, particularly when they have a long no-claims history.’
Industry statistics show that the frequency of claims among the elderly is lower than among younger drivers. Yet the ABI says that while the number of claims may be lower, the size of claims they make is higher than for most other age groups.
One independent expert told Money Mail: ‘The ABI says claims costs are rising, especially for the over-70s.
In turn, the over-70s are reporting that the cost of their cover is rising. As an observer, that feels about right. But does that make it fair. No, it doesn’t.’
Some of the increases faced by elderly car owners when their cover renews are off the scale.
Data collected by Money Mail shows that increases of 50 per cent or more are commonplace, although in some instances (not all) customers have been able to find cheaper cover by shopping around.
For example, 78-year-old Jackie Galloway, from near Newmarket in Suffolk, recently received the renewal premium for her MG3 from Saga.
Her premium for the previous three years had been fixed at just below £226. Her renewal premium was either £452 for a year or £575, fixed for three years — respective increases of 100 and 155 per cent.
‘I drive no more than 4,000 miles a year,’ says an exasperated Jackie. ‘I will be 79 next January and I would have thought that Saga, a company dedicated to serving the best interests of the elderly, would understand that at my age I am not sure I will be driving in three years’ time, or even still be alive.’
The latest Association of British Insurers report shows that, in 2021, the under-25s and over-75s made the highest average claims although the elderly claimed less frequently
Shopping around, she managed to obtain like-for-like insurance for £270, a more tolerable 20 per cent increase.
‘Using a comparison website to find better value for money is the only way to keep a lid on the rising cost of premiums,’ she says.
Maria Postings, a retired teacher from Woodford Green in Essex, has been less fortunate.
The insurance for her four-year-old Toyota RAV4 Hybrid renews on Monday at a price 98 per cent higher than last year. Despite shopping around, she has not found equivalent cover significantly cheaper to warrant a switch.
‘My premium is jumping from just under £648 to £1,284,’ says 73-year-old Maria. ‘In 50 years of driving, I’ve had two people drive into the back of me and that’s it.
‘The car is fitted with an immobiliser and I use a steering wheel lock. I do everything by the book — and I’m still being stung with a premium increase which seems unfair.’
Malcolm Brockman is a member of the Alliance of British Drivers which campaigns on issues impacting motorists — such as 20mph speed limits and the recent expansion of the Ultra Low Emission Zone (ULEZ) in London.
Aged 76, Malcolm was told that if he wanted to renew cover for his BMW 328i, he would have to pay 57 per cent more than last year. He failed to find cheaper cover elsewhere and reluctantly renewed, but he is angry that he has had to pay such a big increase.
‘No account is taken of one’s experience, driver training or motoring history by insurers,’ says Malcolm, who lives in Maidstone, Kent. ‘I am a former police driver with a maximum no-claims bonus and drive no more than 8,000 miles a year.
‘It seems that insurers, like everyone else concerned with motoring and motorists, are taking us for a ride.’
He adds: ‘Who is monitoring this scandal and when are we likely to see fairness return?’
It is a view shared by many other elderly readers.
Berni Targar, a 76-year-old retired steelworker from the Isle of Sheppey in Kent, speaks for many.
‘My insurer, Policy Expert, wanted to push up my premium by 94 per cent,’ he says. ‘I was shocked, but I feel the elderly are being exploited in many markets such as broadband and energy supply.’
He adds: ‘Shopping around does not always pay. Indeed, the only way I could get my insurer to reduce its renewal offer was by sacrificing my protected no-claims bonus.’
Such protection enables a policyholder to make a claim without losing their no-claims bonus.
The ABI told Money Mail: ‘Insurers are conscious that many households continue to face a higher cost of living. They remain determined to ensure motor insurance stays as competitively priced as possible.
‘However, the rising costs of repairs as well as energy inflation and increases in costs of labour and replacement parts have made this increasingly challenging.
‘Insurance is based on risk, and our data shows that the average cost of claims is higher for both younger and older drivers, which can impact premiums for those age groups.
‘Anyone concerned about being able to afford their premium should speak to their insurer — and it can still pay to shop around to find the policy that best meets your needs.’
Sadly, not always.
