Car insurance targets 'grey market'
0 commentsA new line of insurance products tailored specifically towards the over 50s market has been released by Help the Aged, the UK's leading charity for older people, in association with mutual insurer Liverpool Victoria.
The new products, branded 'intune', will allow those in their twilight years to enjoy the same car, home and travel insurance benefits as the rest of the population, instead of facing the higher premiums typically levelled at older customers.
There are over 20 million people aged over 50 in the UK and they collectively posses personal assets to the tune of £5.16 trillion, more than the Gross Domestic Product of every nation in the world apart from the USA. However, the 'golden greys' are discriminated against by most mainstream motor cover providers who claim that accident rates increase with age.
Changing perceptions
Typically older people have a harder time finding competitive deals on their motor insurance. According to a recent survey by independent online price comparison and switching service uSwitch.com, a quarter of those aged over 75 fail to even obtain a quote for their car insurance.
However, intune is hoping to redress the balance by offering older drivers bespoke policies with lower premiums. Anne Grahamslaw, managing director of intune, explained that the company is looking to change the perception common among general insurers that the over 50s market is made up of one "amorphous lump".
"This idea that there is a 'grey market' is insulting," she told the Financial Times. "Age shouldn't matter. We want to make access to financial services suitable to this market and transparent. Older people are doing more these days."
In response to the launch, Aron Thompson, head of insurance at uSwitch.com, commented: "With more than 20.3 million people over the age of 50 in the UK, it is no surprise that new entrants are coming to market to tap into this lucrative 'grey pound'".
Competition
The new policy from intune is not the only insurance choice available to older drivers. Over 50s expert, SAGA, offers very similar cover as do several other firms, and added competition is likely to reduce car insurance premiums without compromising the quality of cover.
“We always urge consumers of any age to make sure that they look around for the best deal, and find the insurance that is most suited to them," continued Mr Thompson. "Older drivers should keep in mind that there are several providers that specialise in this area such as Castle Cover, Age Concern as well as SAGA and intune, so it’s worth shopping around."
He went on to warn that car insurance premiums are dependent on many factors other than age, such as car type and location.
The relative lack of insurance options for aging drivers is something that is slowly being addressed by the wider industry as well. The Association of British Insurers, the insurance industry's main trade body, recently said that the upper age cut-off has increased from 74 to 82. Representatives from the ABI are currently investigating ways to make it easier for elderly people to obtain insurance.
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