Is there age discrimination in expensive car insurance for older drivers?

Many car insurance companies charge age supplements for older drivers. Why is that and how can older drivers still save?

According to Stiftung Warentest, car insurance premiums increase by an average of 100 percent between the ages of 55 and 80. At first glance, that sounds discriminatory. The insurance companies argue with the statistics. And according to the older drivers are sometimes just as expensive as novice drivers.

Why does car insurance become more expensive as you get older?

Older drivers over the age of 65 are less likely to be involved in accidents than younger ones, but when they do occur, the collisions are often serious and the damage is correspondingly expensive. According to the Federal Statistical Office (Destatis), 14.5 percent of those involved in accidents in 2021 were older than 65. However, this age group is significantly overrepresented in the case of serious injuries and accident deaths.

In addition, if older drivers are involved in an accident, they are the main culprit in more than two thirds of the cases, according to the Destatis analysis. For those over 75, the proportion even rises to around 76 percent.

Of course, this does not mean that all older people drive badly or unsafely. However, car insurance companies often have these statistical abnormalities paid for in the form of higher premiums.

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What about my no-claims class?

Anyone who drives a car without an accident gets a higher no-claims class in liability and (if available) fully comprehensive insurance for each year. This means that the insurer rewards accident-free driving with a discount on the premium.

However, after around 35 years, the maximum saving is reached, so to speak: The Stiftung Warentest comes to the conclusion that they asked various insurers about the specific discounts – and they are getting smaller and smaller over the years. But it also came out that insured persons up to the age of 80 often pay less than people between 27 and 41.

How can I save on insurance in old age?

First of all: It’s worth comparing! Remaining loyal to the car insurer just because of old loyalty makes the insurer happy, but it is rarely rewarded. Especially if a contract has been in place for years or even decades, you should definitely look for the documents from the conclusion of the contract and look them up: Is the information from that time still up to date?

For example, the annual mileage – i.e. how much distance someone actually drives by car. Maybe you retired at some point after signing the contract and therefore drive significantly fewer kilometers a year. Even two or three thousand kilometers can make up a price difference of around ten percent in some tariffs.



Many insurance companies also grant a discount if you do not choose the workshop yourself in the event of damage, but the insurance company is allowed to choose it.

Even the discount protection that many insurance companies offer is not worth it for everyone. Although it protects the driver from losing his no-claims class (SFK) once a year in the event of damage, the corresponding tariffs are often between 15 and 25 percent more expensive, according to the comparison portal Verivox. Here you should compare exactly whether it is really worth it. Insurers detail in their “downgrade tables” how one is downgraded in the event of a claim. In this way, everyone can calculate for themselves whether and when discount protection pays off.

And last but not least, you should also check regularly: what insurance cover is actually necessary? For example, is fully comprehensive insurance really still worth it? As a rule of thumb, it is often stated that fully comprehensive insurance is worthwhile for new cars that are not more than five years old. Here, too, you should compare exactly and put the residual value of your own car in relation to the contributions.

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