Four Key Life Stages For Car Insurance Pricing

In February this year the DVLA revealed that there are currently over 1,000,000 drivers in the UK aged 80 or over and that there are 122 motorists who are over 100 years old. With an ageing population this is forecast to increase markedly over the next few years: the Office of National Statistics has predicted that there will be some 8.7 million people over the age of 75 in the UK in 20 years’ time – an increase of 3.9 million (81%) on current estimates. It is widely understood that mobility is a key concern for older people and the ability to drive is often key to retaining independence and links to activities and services. Leading independent comparison site Tiger.co.uk has examined a range of car insurance quotes in order to measure the effect on insurance premium pricing that UK drivers experience as they age. Using a standard driver profile and averaging prices by gender, the site returned the following set of pricing data, with age, driving experience, earned no claims bonus and retirement at the age of 65 being the only variables to the driver profile. The results can be illustrated graphically to clearly show the four key life stages of pricing for drivers when it comes to age as a discriminating factor for insurers: These four life stages can be categorised as:
  1. Young drivers
  2. Working years drivers
  3. Early retirement drivers
  4. Late retirement drivers
Commenting on the results, Andrew Goulborn, Tiger.co.uk’s Commercial Director, said: “With an ageing driving population car insurance prices for older drivers will come under increasing focus, just as it is now for younger UK drivers. Our data revealed that an 80 year-old driver will be paying more than twice as much for their insurance as a 50 year old. And a 90 year old some four times more. Clearly these rates reflect the relative risk presented to insurers by older drivers but with mobility so key to the lives of so many of our senior citizens, it’s vital to find ways to keep safe drivers on the road for as long as possible. And insurance needs to be affordable for these safe drivers. We welcome work being undertaken by Newcastle University and others in developing technologies that may help older drivers overcome some of the difficulties they may encounter when driving such as “Granny Nav” route planners and enhanced dashboard displays. And when it comes to affordability we would encourage older drivers to shop around for the best prices when their insurance is up for renewal – using Tiger.co.uk is a great start for drivers of all ages”.
06/09/2012 10:02:11 Eren
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