People in their 80s and 90s tend to pay substantially more for their car insurance because they are more likely to have accidents and make expensive claims. That is one of the findings of research which appears to have been issued in response to a recent Guardian article highlighting the experience of actor Sheila Hancock.
On 26 June we reported that Admiral, the insurer Hancock had been with for three years, had whacked up her premium from an annual £873 to £2,246 in 12 months – prompting the 82-year-old to claim insurers appeared to be prejudiced against people of her age.
Admiral said her age and occupation were not the reason for the huge hike, but it prompted a wider discussion about alleged ageism.
On Thursday the Association of British Insurers waded in, issuing figures which it said showed a “clear link” between someone’s age and the risk of them making a costly claim. It said younger drivers, aged 18-20, pay the highest average of £972 because their claims are likely to be expensive – an average £3,667.
As you get older the average premium steadily falls until it reaches £241, the typical cost for 66- to 70-year-olds. Then it starts climbing: £255 at 71-75, £291 at 76-80, £352 at 81-85, and £415 at 86-90.
At 91-plus, the average cost of a year’s cover is £478 – 87% more than for someone in their early 70s because their claims are around £3,656, almost 50% higher than those 20 years younger. However, they pay less than those in their late 20s, at £502, says the ABI.
The average motor premium for all age groups is £360, which has fallen by 5% over the past two years