Car insurance firms can turn down elderly road users purely based on their age with no discrimination rules in place to stop them, an expert group has warned
Consumer watchdog Which?
has shed light on a little-known element within the world of car insurance that could impact older drivers. Due to particular equality rules, car insurance companies have the legal right to deny coverage to elderly motorists simply due to their age.
The revelation points out that insurers are quite within their rights to set maximum age limits for coverage, potentially disadvantaging senior road users. This policy could mean less choice and fewer competitive offers available to older individuals seeking car insurance.
Which? highlighted the issue by confirming: “Yes, car insurers can refuse to cover you if you’re above their maximum age.”
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They elaborated on the fact that legislation concerning equalities does not prohibit insurance providers from imposing age restrictions or pricing based on age. They stated: “Equalities legislation doesn’t stop insurers having age limits or pricing by age.”
However, it’s not all bad news, as they pointed out that such maximum ages can differ significantly between insurers, and some don’t impose an upper age limit at all. Which?
’s advice is clear: “Shop around, using different comparison sites, and consider insurers that aren’t on them, such as NFU Mutual.”
Adding to the concern, research by Age UK through ‘mystery shopping’ revealed that 21% of drivers aged 80 and above were outrightly declined quotes for car insurance over the phone or online purely because of their advanced years. Alarmingly, the study also uncovered that when insurance was not offered, 85% of the time these older motorists were not directed to alternative providers.
A Parliamentary petition is urging the government to reconsider the rules that often result in higher road usage costs for older drivers.
Motorists have only a short time left to sign the petition, which is set to close on May 20. The petition, initiated by Sarah Kelly, argues that individuals over 70 should not be automatically charged more for car insurance based solely on their age.
The petition states: “Parliament must review the exclusion of financial services from the age discrimination provisions of the Equality Act.
“We think over 70s should not routinely, based upon their age, be charged more for car insurance than any other sector of society.
“We think the “signposting” agreement between the government and the insurance industry is a failure.”
To date, over 1,700 people have signed the petition, but 10,000 signatures are needed to prompt an official response from the Government. If the petition reaches 100,000 signatures, it will be considered for debate by MPs in Parliament.
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.