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Legal Rights of Insurance Companies to Refuse Coverage Based on Age

Does an insurance company have the legal right to refuse to cover a driver considered too old?

Car insurance is generally quite obscure, particularly with regard to its pricing conditions and its policy of acceptance or not of coverage and termination. However, there are certain rules, governed by the Insurance Code, making it possible in particular to avoid abuses and disputes between insurers and policyholders. Among them, the one obviously prohibiting discrimination. However, do companies have the right, in a completely legal manner, to refuse to take charge of a driver who is considered too old, and too particularly at risk? We will explain everything to you !

Strict rules for insurance

As stipulated in the articles 225-1 and 225-2 of the Penal Code, any form of discrimination is strictly prohibited, and punishable by a fine of up to €45,000. It therefore goes without saying that insurance companies have absolutely no right to discriminate against customers on the basis of their age, gender or place of residence. Except that this is in theory. Because in practice, it is common for insurers to adjust their prices according to these criteria, as we will explain to you below.

Quite rare cases

A young driver will pay much more than an older driver. Although insurance companies refusing to cover seniors exist, they are relatively rare, this being theoretically prohibited. However, companies that accept this type of profile tend to increase the price of the contribution, while older people are considered more at risk, which is obviously not always true. The best thing is to do your research and compare before you start.

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2024-01-15 16:47:19
#insurance #refuse #cover #senior

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