Older drivers will see dramatic car insurance increases when they hit this one birthday, according to leading experts. Elderly motorists often enjoy some of the cheapest car insurance rates with years of experience and a no-claims bonus working wonders for their bills.
However, motorists will suddenly notice premiums rising from around the age of 75 in a major blow for state pensioners. Prices will tend to slowly rise from this stage with motorists in their late 80s likely to be paying hundreds of pounds more than they were just years before. Ian Wilson, car insurance expert and Managing Director of Tiger.co.uk stressed prices increase due to existing older driver accident data.
He said: “Older drivers are typically considered one of the safest age groups, which is why the over 65 category enjoys the cheapest premiums.
“However, as drivers approach mid to late 70s, they often see their premiums start to increase, as accidents at that age can be more frequent and injuries could be more severe.”
Data from the Association of British Insurers (ABI) paints a vivid picture of why road users are paying more in later life.
Average car insurance claims settle between. £3,000 and £4,000 for most groups between the ages of 26 and 75 before suddenly spiking when road users hit the mid 70s.
Those between 76 and 80 have an average claim of around £4,500 before rising to over £5,000 for drivers aged between 86 and 90.
The data suggests motorists in this age range are even costing insurers almost as much as newly qualified drivers between the ages of 18 and 20.
Statistics from Go Compare suggest road users between the ages of 56 and 69 will usually pay around £338 to use the roads every year.
However, this rises to £402 a decade later when motorists are between 75 and 79 before jumping to £497 when they are 80 to 84.
They suggest road users still behind the wheel between 85 and 89 will pay average annual premiums of £688.
GoCompare explained: “While premiums are lower for older drivers, they generally start rising for drivers in their 70s and again for those over 80.
“That’s because statistics show that drivers at this age are more likely to be involved in accidents and claim on their insurance.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.