ABI says a driver’s age is one of the factors insurers consider when setting the price of car insurance
Older and younger drivers pay more for their car insurance than those in their middle age because they are more likely to have accidents and make expensive claims for personal injuries, the ABI has said.
The trade body said that new data released data today showed there was a clear link between the age of a driver and the risk of making an expensive claim on a car insurance policy.
Although 61-65 year olds have the lowest average claim, their average premium is slightly more than drivers in their late sixties because they tend to make more claims.
Drivers aged over 70 pay higher premiums than those in their middle age because they are more likely to make more expensive claims.
Drivers aged over 90 pay an average premium of £478, because the cost of their average claim is £3,656, almost 50% higher than those who are twenty years younger.
However, these older drivers pay less than those in their late twenties, who pay an average of £502.
ABI manager of general insurance Rob Cummings said: “Rising life expectancy is leading to an increase in the number of older drivers who naturally want competitively priced insurance and the motor insurance market is meeting this demand.
“But the price of insurance is based on risk, including the higher average claims costs as drivers get older.
“In addition to a driver’s age, insurers will consider many factors when setting the price of car insurance including claims history, the vehicle, postcode and driving record.
“The motor insurance industry is competitive so it is important to remember to shop around when renewing a policy and consider using a specialist broker or insurer.”