Recent research has shown that insurance costs for older drivers are rising while younger riskier drivers costs are falling.
Drivers in their 50’s are now paying 38% more for cover, in their 60’s 46% more and those over 70 are paying up to 77% more.
The reason for these increases seem to be that the insurers are compensating for the increase in number of drivers over 70. Statistically drivers over the age of 70 are more likely to have accidents so this has fuelled the rise in premiums in this age group. The number of older motorists has been rising as the population ages and as alternatives such as public transport have suffered budget cuts in rural areas.
Other reasons are the increase in Telematic technology marketed for younger drivers to track their driving habits via a black box fitted in to their car.
The other main reason for an increase in premiums is that older drivers do not shop around as much for the lowest premiums. Many insurers offer lower prices to new customers to entice them over to their company. They then make up on their profits by bumping up the prices to customers who renew.
The main way of getting the best deal is to shop around online and many elderly lack the technological skills to do this currently.
This may well change in the future!
Extracts from Sam Barker Daily Telegraph