Does it pay to be old with car insurance?

It seems it pays to be older in the world of car insurance. Research by the product comparison website moneysupermarket.com this month shows that in terms of car insurance for us Brits, it gets cheaper the older we get. The study took identical criteria (excess of £250) from a number of individuals but only altered the age of the driver. Results showed that a sixty-year-old driver could pay up to half the amount for their yearly policy than that of someone half their age.

Some people might be somewhat surprised at these results, as elderly people are often seen as more susceptible to accidents. Indeed, poor vision, slower reaction speeds and higher health risks contributed to research results at the start of 2007 by the Association of British Insurers (ABI), which revealed that drivers aged over 70 are three times more likely to have an accident on the road than those between 45 and 60. However, this doesn’t seem to be the opinion of the insurance companies.

Other findings show that more elderly people represent a surprisingly small proportion of claims per year compared to younger drivers and, as a result, the younger drivers are the ones bearing the brunt of the costs.

The director of moneysupermarket.com, Richard Mason, explained the results: “Clearly insurers feel that people in their 20s and 30s are a far greater risk than those in their 60s and 70s. This is because they tend to drive more frequently and at busier times. Insurers also deem younger drivers as being more aggressive on the road, in comparison.”

More good news for elderly drivers looking for good insurance rates came in May 2007 when the charity Help the Aged partnered up with mutual insurer Liverpool Victoria to offer special reduced rates on all manners of insurance. Intune Group Ltd are a subsidiary of the Help the Aged charity, providing help with price comparisons for people over 50 and donating all profits from their service to charity.

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